TLDR
- BYD (1211.HK) shares jumped 2% to HK$110.6 as Tesla’s budget EV models failed to gain traction
- Tesla stock dropped 4.5% after launching Model Y at $39,990 and Model 3 at $36,990 with reduced features
- BYD’s UK sales exploded 880% year-over-year in September with 11,271 vehicles sold
- The UK is now BYD’s largest market outside China with 3.6% market share
- BYD operates 100 UK retail locations and plans to launch additional models soon
BYD stock climbed more than 2% to HK$110.6 in Wednesday trading. The rise came as competitor Tesla struggled to win over investors with its latest product launch.
Tesla introduced budget versions of its Model Y and Model 3 on Tuesday. The Model Y is priced at $39,990 while the Model 3 starts at $36,990.
These models offer over 300 miles of range but come with compromises. Both vehicles lack Autosteer and use fewer premium components than standard versions.
The market didn’t react well to Tesla’s announcement. Tesla stock closed down 4.5% on Tuesday.
Analysts questioned whether the modest price cuts would attract new buyers. The timing is particularly challenging after U.S. EV tax credits expired.
BYD Dominates UK Market
BYD reported explosive growth in the UK market for September. Sales jumped 880% compared to the same period last year.
The company sold 11,271 vehicles in the UK last month. The plug-in hybrid Seal U SUV led sales figures.
The UK has become BYD’s largest market outside China. The company captured 3.6% of the UK market share in September.
BYD just opened its 100th UK retail outlet. UK manager Bono Ge said the brand’s British future looks “hugely exciting.”
The company plans to launch additional hybrid and electric models in the coming months. This expansion continues BYD’s aggressive growth strategy.
Price Strategy and Market Position
BYD’s pricing approach contrasts sharply with Tesla’s latest move. The Chinese automaker offers models like the Seagull starting at just $11,400.
This aggressive pricing has helped BYD expand globally. The company now outsells Tesla in international markets.
The UK market offers advantages for BYD that other regions don’t. Britain hasn’t imposed tariffs on Chinese EVs like the EU and U.S. have.
The European Union implemented tariffs up to 45% on Chinese EV imports in October 2024. High U.S. tariffs have effectively blocked Chinese automakers from that market.
UK EV sales reached record levels in September. Pure battery electric vehicle sales hit nearly 73,000 units.
The Seal U ranked among the UK’s top 10 best-selling cars for September. The Kia Sportage, Ford Puma, and Nissan Qashqai led overall sales.
Current Market Dynamics
BYD continues to outperform European rivals including Jaguar and BMW. The company maintains its lead over Tesla in global sales despite slowing Chinese demand.
The UK government allocated £650m in EV purchase discounts in July. Buyers can claim up to £3,750 on qualifying brands.
Chinese-made vehicles are excluded from this subsidy program due to manufacturing emissions. BYD has criticized this decision as harmful to the UK’s long-term car market.
BYD’s September performance shows the company capturing market share while competitors struggle. The contrast with Tesla’s reception highlights different strategic approaches in the evolving EV market.
