BYD COMPANY's stock soared 5.08% in intraday trading on Thursday, outperforming the broader market. The rally came after market analysts suggested the company is unlikely to engage in aggressive price cuts for its electric vehicles (EVs) in China this year.
According to Jefferies analysts, the magnitude of price reductions in China's EV industry is expected to be much less than in 2024. The analysts cited lower dealer inventories and better profitability of new car sales for BYD, indicating that the company is unlikely to initiate a price war similar to the previous year.
The analysts also noted that among the top Chinese EV makers, Xiaomi, Huawei-backed Harmony Intelligent Mobility Alliance, and XPeng are outperforming in terms of new order intakes. Additionally, they suggested that Tesla's introduction of full self-driving features in China could serve as a good example for Chinese rivals on how to commercialize their advanced driver assistance technologies.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.