President Joe Biden is actively promoting a shift towards electric vehicles in the U.S., reportedly employing stringent emissions regulations and substantial subsidies of up to $7,500 to incentivize American consumers to purchase electric cars over traditional gas-powered ones.
In a move to safeguard American automakers, President Biden has initiated measures to significantly raise tariffs on Chinese electric vehicles, quadrupling them to 100 percent through an executive action signed earlier this month.
While the increased tariffs will create a notable cost gap between Chinese imports and American-made electric vehicles, certain models such as the budget-friendly BYD Co., Ltd. BYDDY BYDDF Seagull may still remain competitively priced compared to some U.S. counterparts even after the tariffs are applied, The New York Times reported.
BYD, which overtook Elon Musk’s Tesla, Inc. TSLA in the last quarter of 2023 to become the largest global EV manufacturer, is planning to introduce its Seagull hatchback in Europe next year. The vehicle, priced under $10,000, is expected to be sold for less than €20,000 ($21,500), even after tariffs and modifications to meet European standards, reported Bloomberg.
The Seagull’s arrival is expected to intensify the competition among European automakers as they transition to the post-combustion-engine era. The vehicle, which has received acclaim for its build quality, design, and technology, is already performing well outside of China, particularly in Mexico.
According to a release dated April 19 on the company’s website: “Adopting an ocean-inspired aesthetic, the BYD Seagull features dynamic color schemes and lines. Its streamlined body boasts smooth curves, radiating a strong sense of sportiness”.
Biden’s advisors acknowledge that electric vehicles, with an average retail price exceeding $53,000 in the U.S., could witness accelerated sales if they were more affordable, per The New York Times.
A new wave of affordable electric vehicles, popular in Europe with prices as low as $10,000, isn’t favored by President Biden’s administration for American consumers due to their Chinese origin. Despite their potential to lower overall car prices and aid Biden’s re-election campaign amid inflation concerns, measures are being taken to inflate tariffs on Chinese EVs to safeguard U.S. automakers.
Price Action: BYDDY shares closed higher by 0.62% to $53.40 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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