BYD Develops $25,000 Electric Car From Investing.com

Financial analysts at Bernstein said Monday that a $25,000 electric car is available from Tesla (NASDAQ: ) competitor BYD.

A recent report from Reuters indicated that Tesla has abandoned its plans for an affordable car. However, Elon Musk immediately denied these reports, saying that the article was false.

Bernstein’s comments indicated that Tesla is currently in a period of stagnation, anticipating the introduction of a more accessible vehicle platform that should boost the company’s growth.

Elon Musk announced in a tweet Friday, after the stock market closed, that Tesla plans to launch its autonomous taxi service in August.

Bernstein noted, “We see the Aug. 8 announcement of the autonomous taxi as more of a visionary goal, similar to Tesla’s previous Semi truck and Roadster announcements — and unlikely to be Tesla’s next vehicle model.” .

Despite Reuters’ claims, the Model 2 is expected to have a starting price of $25,000 and be introduced in late 2025 or 2026.

Bernstein commented further: “The introduction of an accessible vehicle platform will undoubtedly expand Tesla’s potential market – our analysis suggests that a $25,000 sedan and a $30,000 SUV would increase Tesla’s addressable market.”

However, Bernstein also noted that Chinese electric car maker BYD currently offers its Seal model in China for less than $25,000, which is very competitive with Tesla’s Model 3, and a $25,000 SUV that is comparable to the Model Y of Tesla.

Bernstein expects the quality of competitors’ products to improve over the next three years.

Bernstein also said that “with the introduction of Model 2, Tesla may face the problem of reducing sales of its current models, which are becoming obsolete.” The introduction of the Model 2 should bring significant benefits to Tesla, but it may not fully meet investors’ expectations.”

This article was generated and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our Terms and Conditions.