- BYD pre-announced higher-than-expected third-quarter profits
- BYD sold more cars with a richer mix of features than expected
- Chinese consumers are using price cuts to trade up to higher-end cars
- BYD and Tesla have been the only EV makers to consistently make profits
- Tesla’s price cuts are a reason for concern among investors
BYD’s surprise profit announcement for the third quarter is good news for Tesla. The company’s higher-than-expected profits indicate that Chinese consumers are using price cuts to trade up to higher-end cars, which is a positive sign for Tesla as well. Both BYD and Tesla have been able to maintain market share and deliver consistent profits, making them the leaders in the EV market. However, Tesla’s price cuts have raised concerns among investors, who would like to see margins stabilize. Overall, the strong performance of BYD and Tesla highlights the potential for growth in the EV industry.
