BYD (1211.HK) Stock: Chinese EV maker Gains as Tesla's Budget Models Disappoint

TLDR

Table of Contents

BYD (1211.HK) stock rose over 2% to HK$110.6 on Wednesday after Tesla’s new low-cost models disappointed investors
Tesla (TSLA) shares fell 4.5% following the unveiling of stripped-down Model Y at $39,990 and Model 3 at $36,990
BYD reported 880% year-over-year sales surge in the UK for September, selling 11,271 vehicles
The UK became BYD’s largest market outside China with a 3.6% market share in September
BYD’s plug-in hybrid Seal U SUV was the top seller, with the company now operating 100 UK retail outlets

BYD shares climbed over 2% to HK$110.6 in Hong Kong trading on Wednesday. The gain came as Tesla’s new low-cost electric vehicle models failed to generate enthusiasm among investors.

Tesla unveiled stripped-down versions of its Model Y and Model 3 on Tuesday. The Model Y is priced at $39,990 while the Model 3 comes in at $36,990.

Both vehicles offer over 300 miles of range but lack premium features. The models don’t include Autosteer and use fewer high-end components.

Tesla stock dropped 4.5% on Tuesday following the announcement. Analysts weren’t convinced by the modest price cuts, especially after U.S. EV tax credits expired.

The market’s lukewarm response to Tesla’s strategy highlights a stark contrast with BYD’s approach. The Chinese automaker has been far more aggressive with pricing and expansion.

BYD’s UK Market Explosion

BYD reported a 880% surge in UK sales for September compared to the same month last year. The company sold 11,271 vehicles in the UK last month.

The plug-in hybrid version of the Seal U SUV accounted for most of those sales. The UK has now become BYD’s largest market outside of China.

2026 #BYD #Seal UDM-I Plug-In …
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#2026BYDSEAlUDMi #2026BYDSUVReview #BestHybridSuv2026 #BYDSealUDMi pic.twitter.com/wwjVVxC5sr
— EVSHIFT (@evshift) October 8, 2025

BYD’s UK market share jumped to 3.6% in September. The company has just opened its 100th retail outlet in Britain.

Bono Ge, BYD’s UK manager, described the brand’s future in Britain as “hugely exciting.” The company plans to launch more hybrid and electric models in coming months.

Pricing Power and Market Access

BYD’s success stems partly from its pricing strategy. The company offers models like the Seagull, starting at just $11,400.

This aggressive pricing puts pressure on Western competitors who struggle to match those numbers. The approach has helped BYD rapidly expand its global footprint.

The UK market is particularly attractive for BYD because it hasn’t imposed tariffs on Chinese EVs. The European Union hit Chinese EV imports with levies up to 45% in October 2024.

The U.S. has effectively locked out Chinese automakers through high tariffs. Both President Trump and his predecessor backed these measures.

UK EV sales hit a record high in September with nearly 73,000 pure battery electric vehicles sold. Plug-in hybrid sales grew even faster.

The Seal U and another Chinese model, the Jaecoo 7, made it into the UK’s top 10 best-selling cars for September. The Kia Sportage, Ford Puma, and Nissan Qashqai led overall sales.

Petrol and diesel vehicles still represented more than half of new car sales in the UK last month. The shift to electric continues but traditional engines remain popular.

The UK government allocated £650m in EV purchase discounts in July. Buyers can claim subsidies up to £3,750 on brands including Nissan, Peugeot, and Vauxhall.

Chinese-made vehicles are excluded from this scheme due to manufacturing emissions concerns. BYD criticized this decision and warned it could hurt the UK’s car market long-term.

BYD continues to outpace Tesla globally despite slowing sales in China. The company has also surpassed European rivals like Jaguar and BMW in recent sales figures.

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