For electric vehicles (EVs) to truly go mainstream, they need to be more affordable. Automakers are working to cut costs and Chinese EV giant BYD Co Ltd BYDDY is already racing ahead. With a vertically integrated business model and full control of its supply chain, BYD is selling cars at a much cheaper sticker price.
Its cheapest model, the BYD Seagull, just got a price cut. The 2025 Seagull now starts at only 56,800 yuan (around $7,800), down from its earlier price of 69,800 yuan ($9,500). The promotion applies to the non-Smart Driving Vitality Edition.
Despite an intense EV price war in China, BYD continues to cut prices. When the company launched the Seagull last year, it declared the start of “a new era where electricity is cheaper than oil.” Seagull has been well received by the public. This year, Seagull got an upgrade with its new “God’s Eye” smart driving system at no extra charge. This makes it an even more attractive option for budget-conscious buyers.
BYD’s innovation and supply chain control are paying off. In the first quarter of 2025, BYD sold more than one million new energy vehicles (NEVs), marking 60% year-over-year growth. With ultra-low pricing, regular upgrades, and strong sales momentum, BYD is clearly setting the pace in the affordable EV segment and turning up the pressure on global rivals.
Japanese auto giant Toyota TM is making waves in China with the launch of its most affordable EV yet, the bZ3X, priced around $15,000. That’s 30% cheaper than its bZ3 sedan, one of Toyota’s mid-to-high-end EVs in China. Demand was so high that TM’s server crashed after 10,000+ orders in an hour. With bZ3X, Toyota is directly challenging budget EV leaders like BYD.
U.S. EV behemoth Tesla TSLA plans to launch a more affordable EV in the first half of 2025. As sales growth slows and price sensitivity increases, this move could boost Tesla’s competitiveness. While full details are still under wraps, sticking to the timeline could help Tesla regain some lost market share and attract a wider range of buyers.
Shares of BYD have risen around 21% year to date against the industry’s decline of 16%.
Image Source: Zacks Investment Research
From a valuation standpoint, BYD trades at a forward price-to-sales ratio of 0.85, slightly above the industry. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BYD’s 2025 and 2026 earnings implies a year-over-year uptick of 33% and 19%, respectively. While estimates for 2025 have been northbound over the past 60 days, the same for 2026 have been southbound.