BYDDY - Tesla's Feeling the Pain of Lower Pricing but This EV Maker Isn't. Is the Stock a Buy?
2023-11-10 17:26:00 ET
It's becoming less expensive than ever to buy an electric vehicle. Automakers around the world are slashing prices for their EVs and coming out with less expensive models. The impact on their bottom line hasn't gone unnoticed.
Even Tesla (NASDAQ: TSLA) , the leader in electric vehicles with very high brand strength, has had to slash prices. It's now planning to build a 25,000 euro vehicle (a bit less than $27,000) in Germany, according to a Reuters report. With lower prices, Tesla's profit margins have shrunk. Its cost of goods ate up 7.2% more of its sales last quarter than in the same period last year.
But its biggest rival in EV production, BYD (OTC: BYDDY) , hasn't faced the same challenge. In fact, it's managed to increase its gross margin on auto sales by three percentage points in the same period. And you can buy the stock at a great price right now.
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Tesla's Feeling the Pain of Lower Pricing, but This EV Maker Isn't. Is the Stock a Buy?