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BYD issues substantial EV price cut, hoping to erode Tesla sales success

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BYD has announced a significant price cut on its electric Seal sedan as the Chinese brand looks to decrease Tesla’s EV dominance in the region.

With the tsunami of demand for EVs in China, one of the biggest market winners has been BYD, which is now working to become the top EV seller in the country. However, as Tesla has rapidly lowered its prices for its top models, particularly in China, BYD has been forced to respond with its own price cuts. Now, BYD has introduced another fresh price cut, slashing an astonishing 10% from its Tesla Model 3 competitor, the Seal.

As initially reported by Reuters, BYD has decreased the price of its Seal sedan by 10% across the board and now makes the electric sedan available in five different trims. The BYD Seal Champion Edition, a near-base model variant that competes with the RWD Model 3, now starts at 189,800 yuan ($27,459), which is just over 20,000 yuan ($2,890) cheaper than earlier this year. The Seal Champion Edition already undercut the Model 3 but is now a remarkable 18% cheaper than its American counterpart.

With this newest price cut, BYD is likely aiming to close the sales gap the Seal has with the Tesla Model 3, which has been an incredible sales success in China, with 42,782 Model 3s sold last quarter alone. In comparison, BYD sold 19,572 Seal EVs during the same time period.

Despite Tesla’s price cuts keeping BYD away from complete EV dominance, the Chinese brand still has plenty to be excited about. Foremost, the Chinese automaker reported mind-boggling first-quarter earnings, which sent its stock skyrocketing. Second, while its battle with Tesla seems unending, it is handily winning over customers from local sales hegemon Volkswagen, which has yet to garner a significant EV sales following in the region.

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Looking forward to Q2, many expect a slight slowing in the overall car market as the Chinese economy shudders thanks to global market instability. According to Reuters, BYD has reduced shifts at many of its production facilities in preparation.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla Cybertruck earns IIHS Top Safety Pick+ award

To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.

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Credit: IIHS/YouTube

The Tesla Cybertruck has achieved the Insurance Institute for Highway Safety’s (IIHS) highest honor, earning a Top Safety Pick+ rating for 2025 models built after April 2025. 

The full-size electric pickup truck’s safety rating is partly due to the vehicle’s strong performance in updated crash tests, superior front crash prevention, and effective headlights, among other factors. To commemorate the accolade, the official Cybertruck account celebrated the milestone on X.

Cybertruck’s IIHS rating

As per the IIHS, beginning with 2025 Cybertruck models built after April 2025, changes were made to the front underbody structure and footwell to improve occupant safety in driver-side and passenger-side small overlap front crashes. The moderate overlap front test earned a good rating, and the updated side impact test also received stellar marks.

The Cybertruck’s front crash prevention earned a good rating in pedestrian scenarios, with the standard Collision Avoidance Assist avoiding collisions in day and night tests across child, adult crossing, and parallel paths. Headlights with high-beam assist compensated for limitations, contributing to the top award.

Safest and most autonomous pickup

The Cybertruck is one of only two full-size pickups to receive the IIHS’ Top Safety Pick + rating. It is also the only one equipped with advanced self-driving features via Tesla’s Full Self-Driving (Supervised) system. Thanks to FSD, the Cybertruck can navigate inner city streets and highways on its own with minimal supervision, adding a layer of safety beyond passive crash protection.

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Community reactions poured in, with users praising the vehicle’s safety rating amidst skepticism from critics. Tesla itself highlighted this by starting its X post with a short clip of a Cybertruck critic who predicted that the vehicle will likely not pass safety tests. The only question now is, of course, if the vehicle’s Top Safety Pick+ rating from the IIHS will help the Cybertruck improve its sales. 

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Tesla stands to gain from Ford’s decision to ditch large EVs

Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.

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Credit: Tesla

Ford’s recent decision to abandon production of the all-electric Ford F-150 Lightning after the 2025 model year should yield some advantages for Tesla.

The Detroit-based automaker’s pivot away from large EVs and toward hybrids and extended-range EVs that come with a gas generator is proof that sustainable powertrains are easy on paper, but hard in reality.

Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.

Here’s why:

Reduced Competition in the Electric Pickup Segment

The F-150 Lightning was the Tesla Cybertruck’s primary and direct rival in the full-size electric pickup market in the United States. With Ford’s decision to end pure EV production of its best-selling truck’s electric version and shifting to hybrids/EREVs, the Cybertruck faces significantly less competition.

Credit: Tesla

This could drive more fleet and retail buyers toward the Cybertruck, especially those committed to fully electric vehicles without a gas generator backup.

Strengthened Market Leadership and Brand Perception in Pure EVs

Ford’s pullback from large EVs–citing unprofitability and lack of demand for EVs of that size–highlights the challenges legacy automakers face in scaling profitable battery-electric vehicles.

Tesla, as the established leader with efficient production and vertical integration, benefits from reinforced perception as the most viable and committed pure EV manufacturer.

Credit: Tesla

This can boost consumer confidence in Tesla’s long-term ecosystem over competitors retreating to hybrids. With Ford making this move, it is totally reasonable that some car buyers could be reluctant to buy from other legacy automakers.

Profitability is a key reason companies build cars; they’re businesses, and they’re there to make money.

However, Ford’s new strategy could plant a seed in the head of some who plan to buy from companies like General Motors, Stellantis, or others, who could have second thoughts. With this backtrack in EVs, other things, like less education on these specific vehicles to technicians, could make repairs more costly and tougher to schedule.

Potential Increases in Market Share for Large EVs

Interestingly, this could play right into the hands of Tesla fans who have been asking for the company to make a larger EV, specifically a full-size SUV.

Customers seeking large, high-capability electric trucks or SUVs could now look to Tesla for its Cybertruck or potentially a future vehicle release, which the company has hinted at on several occasions this year.

With Ford reallocating resources away from large pure EVs and taking a $19.5 billion charge, Tesla stands to capture a larger slice of the remaining demand in this segment without a major U.S. competitor aggressively pursuing it.

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Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

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Credit: Ford Motor Co.

Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.

The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.

It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.

Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.

“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.

While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.

Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.

Andrew Frick, President of Ford, said:

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

CEO Jim Farley also commented on the decision:

“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”

Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”

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