BYD Shares Slide 8% After Steep EV Price Cuts, Citi Forecasts Strong Growth for Budget EVs

Shares of BYD fell as much as 8.25% on Monday after the Chinese EV maker cut prices on 22 electric and hybrid models, according to CNBC. Discounts included 20% off the Seagull hatchback and 34% off the Seal hybrid sedan. The reductions are effective through June and follow earlier markdowns on BYD’s Han and Tang lines. Citi analysts estimate dealership foot traffic jumped 30 to 40% over the May 24th weekend in response. Citi analysts do not believe BYD’s price cuts will harm its competitors’ market share. They anticipate strong sales growth for lower-priced new energy vehicle companies due to limited competition in that segment.