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BYD would still have the cheapest EV in the US, even with a 100% tariff (electrek.co)

submitted 1 month ago by [email protected] to c/[email protected]

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Even with the new 100% tariff on electric vehicles imported from China, BYD would still have the cheapest EV in the US. According to a new report, BYD’s lowest-priced EV would still undercut all US automakers at under $25,000.

After discontinuing the production of vehicles powered entirely by internal combustion engines in March 2022, BYD has been at the forefront of the industry’s shift to EVs.

Honestly in my opinion it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in. American car manufacturers refuse to fill the market need.

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[–] [email protected] -1 points 1 month ago (1 children)

And these Chinese vehicle prices are artificially deflated.

Deflated thanks to the buying power of the US dollar. That's just more US economic policy rebounding on itself.

You state that companies here are artificially inflating their prices but then state that you’ll buy a foreign brand electric

Domestic automakers are running enormous administrative overhead, thanks to their focus on stock buybacks and investment in kitsch features like AI. That, plus the high cost of computer chips created by the AI/Metaverse/Crypto bubble which is, itself, feeding into buybacks and other corporate accounting tricks to boost executive and board compensation.

Chinese firms don't have that baggage. So they don't need to put enormous markups on their vehicles. The real cost to produce for a new car (especially a small one) is fairly low and you can still turn a big profit on volume if you can outcompete American automakers on price.

There are only a handful of US car makers

Thanks to decades of consolidation. But those car makers have millions of workers spread across dozens of factories. They command hundreds of billions of dollars in domestic capital. Its not like these are three smol beans fighting the Big Scary BYD. These are three of the wealthiest and most profitable businesses to ever exist on the planet.

And they can't compete.

[–] [email protected] 1 points 1 month ago (1 children)

Deflated thanks to the buying power of the US dollar. That's just more US economic policy rebounding on itself.

Deflated because China is subsidizing these vehicles directly as they're state owned companies. What are you even talking about with the buying power of the US dollar?

Domestic automakers are running enormous administrative overhead, thanks to their focus on stock buybacks and investment in kitsch features like AI. That, plus the high cost of computer chips created by the AI/Metaverse/Crypto bubble which is, itself, feeding into buybacks and other corporate accounting tricks to boost executive and board compensation.

Really? Let's see some names and numbers. How much did Hyundai invest in the Metaverse and crypto. How much have they spent on stock buybacks? What about Toyota, VW, BMW, GM, Tesla, Honda, and MINI. What percentage of their overhead accounts for these investments exactly? This reads like incoherent ramblings of all the things you don't like in the world but focused at car companies.

The real cost to produce for a new car (especially a small one) is fairly low and you can still turn a big profit on volume if you can outcompete American automakers on price.

So what's the exact cost to produce a new car?

Thanks to decades of consolidation

Uh, what? Are you referring to the decades of 1900-1910? GM has owned their subsidiary brands for over 100 years along with Ford and Tesla is a relatively new company. What consolidation?

They command hundreds of billions of dollars in domestic capital. Its not like these are three smol beans fighting the Big Scary BYD. These are three of the wealthiest and most profitable businesses to ever exist on the planet.

And China commands hundreds of trillions of dollars, which is who automakers are really competing against.

Three of the wealthiest and most profitable businesses to ever exist on the planet? This is legitimately hilarious and so false. GM was bankrupt 15 years ago. Ford has had to survive on government loans which it wasn't able to pay back until recently and both have a market cap of ~$50B. Tesla is an outlier as they're valued extremely high for their financial situation and what they've produced thus far and most people agree that they're a bubble waiting to burst. By what metric are they the most profitable and wealthiest?

Also, aside from all this ignorance, what's your justification for the bulk of the US auto market, made up of foreign companies, selling their cars for the same prices as these three domestic companies?

[–] [email protected] 4 points 1 month ago (1 children)

Deflated because China is subsidizing these vehicles

What do you think those $7k US tax credits for new EVs constitute?

[–] [email protected] 4 points 1 month ago

A subsidy that applies to everyone in the market, not just the "home team." That's the difference between subsidies to entice consumers to buy EVs and subsidies to put your competitors out of business to the detriment of everyone but you.