Tesla's Chinese Rival BYD Seal A Cost-Effective Contender To Model 3, Says Wall Street Analyst

Wall Street analysts have identified a Chinese electric vehicle (EV) that rivals Elon Musk’s Tesla Inc. TSLA Model 3, at a significantly lower cost. The Seal, produced by China’s EV behemoth BYD Company Ltd. BYDDF, backed by Warren Buffett‘s Berkshire Hathaway, is giving Tesla’s Model 3 a run for its money, Business Insider reported.

Analysts at UBS recently examined the BYD Seal and found that it competes with the Model 3 on many fronts but at a 10-20% lower selling price. The BYD Seal’s larger interior space, 5G connectivity, and innovative cockpit screen were among the highlighted features.

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UBS analysts also pointed out BYD’s unique battery technology, which allows for enhanced in-car legroom, better performance and lower manufacturing costs. Interestingly, BYD is seemingly ignoring the autonomous driving technology trend, opting instead for a Level 2, advanced driver-assistance system.

UBS concluded that the BYD Seal is cost-competitive, attributing this to its vertical integration, suitable specs, and volume scale. They believe Chinese automakers like BYD, Geely, Li Auto, and Xpeng, with their tech savviness and established advantages in the EV battery supply chain, can manufacture EVs on a larger scale and at lower costs.

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