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BYD’s price dumping: squeezing Tesla’s products from markets amid the American automaker’s internal struggles

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On May 26, Chinese electric vehicle manufacturer BYD announced discounts of up to 35%, meaning it will sell cars 75% cheaper than Tesla’s cheapest model.

This pricing move, following the already dramatic price drop of the Seagull model to $4,000 — just a quarter of the cost of the cheapest Tesla Model 3 — has effectively established a new reality.

BYD is competing with Tesla and methodically displacing it from key markets. After a decisive breakthrough in Europe, where BYD surpassed Tesla in electric vehicle sales in April and saw a 169% sales increase in 2024, the company shifted its offensive to the Chinese market.

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