As EV costs tumble in China, an export wave builds

Elon Musk has said the only thing holding back electric vehicle (EV) sales is their price.

Companies like BYD (002594.SZ) are solving that problem in China – and getting ready to solve it for the world.

China’s largest EV maker unveiled this week the Seagull at the Shanghai auto show, shocking analysts and rivals with the car’s specs: a battery range of more than 300 kilometers (186 miles) and a starting price of just over $11,000 – about a quarter of the price of most EVs now on the market in Europe.

“The Seagull is another manifestation of the aggressive deflationary pressures coming from (Chinese) automakers,” Morgan Stanley analyst Adam Jonas said in a note for investors, predicting a “more aggressive push” from Chinese companies to sell entry-level EVs outside China.

Musk’s Tesla (TSLA.O) cut prices in the U.S. for the sixth time since the start of the year on Tuesday, looking to drive demand in the face of economic uncertainty and growing competition. Tesla’s price cuts have prompted other automakers, including in China, to follow suit.

This report’s information was first seen on REUTERS; to read more, click this link.