BYD and Other EV Makers Surge as EU Considers Minimum Price System
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Stock Surge: BYD shares rose as much as 4.8% in Hong Kong, while Xpeng gained 5.3%, indicating strong market optimism regarding the EU's new policy, which could enhance profit margins and sales growth for these companies.
- Policy Impact: The EU's plan requires Chinese exporters to propose minimum import prices and annual shipment limits, which, if adopted, would replace current tariffs as high as 35%, thereby lowering market entry barriers and boosting EV sales.
- Market Competition: This new policy will not only affect BYD and Xpeng but also impact non-Chinese brands like Tesla, potentially intensifying market competition and prompting manufacturers to accelerate innovation and improve product competitiveness.
- Investment Commitments: Under the EU proposal, Chinese exporters must commit to future investments in the EU, which will help strengthen economic ties between China and Europe and lay a foundation for the long-term development of the electric vehicle industry.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 384.14 USD with a low forecast of 19.05 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
14 Buy
10 Hold
10 Sell
Hold
Current: 445.010
Low
19.05
Averages
384.14
High
600.00
Current: 445.010
Low
19.05
Averages
384.14
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
