2024-04-04 03:01:00 ET
Summary
- The price competition in the Chinese EV industry is worsening in early 2024, as industry leaders like BYD have to offer heavy discounts to safeguard their market share.
- The Company is losing its competitive edge, as customers are switching their focus to high-level autonomous driving, an area where Huawei excels.
- BYD's expansion into the overseas market is facing more uncertainties due to rising trade barriers in the US and EU markets.
- Expect a 5%/33% downside in consensus estimates for 2024/25 on lower selling prices and margins.
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BYD Is Unlikely To Withstand Cut-Throat Price Competition