Warren Buffett-Backed BYD Slashes EV Prices In Year-End Push Amid Intensifying Race With Tesla

China’s leading electric vehicle (EV) manufacturer, Warren Buffett-backed BYD, has announced significant price cuts on several models in a year-end push, heating up its global competition with Tesla Inc. TSLA.

What Happened: BYD’s price reductions include several Dynasty models like the Qin, Han, Tang, and Song. The discounts range from RMB 3,000 – RMB 10,000 ($423 – $1,410), according to Chinese news outlet The Paper. However, the Ocean series will not see price adjustments, Electrek reported.

BYD clarified that these discounts are not permanent price cuts but limited-time offers aimed at accelerating its shift to EVs. Customers placing orders and paying deposits can avail of various incentives, with discounts going up to RMB 20,000 ($2,820).

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The company’s CEO, Wang Chuanfu, stated at a recent half-earnings conference that BYD is ready for a price war spanning the next three to five years and is confident of winning market share during this period.

Why It Matters: The price reductions come as BYD seeks to surpass Tesla in global EV sales by the year’s end. BYD sold 165,505 fully electric cars in October alone and has already sold over 1.2 million this year, marking a 77% increase over last year. Tesla, on the other hand, is on track to deliver 1.8 million EVs this year.

BYD, known for its comparatively low EV prices, recently unveiled the Song L, a mid-size electric SUV set to compete with Tesla’s Model Y. The new model garnered 11,000 pre-orders within 17 days of its reveal.

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BYD Photo by A. Aleksandravicius on Shutterstock