On Wednesday, Chinese electric vehicle maker BYD (BYDDF) launched its new budget-friendly EV, the Dolphin Surf, in Europe. This is BYD’s tenth model for the European market and is seen as an important move in the EV industry. Indeed, the Dolphin Surf’s low pricing is expected to shake up the competition and attract cost-conscious buyers with a starting price of €19,990 when including promotional deals.
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In addition, the standard model, which has a 322-kilometer range, costs €22,950, while the longer-range version with 507 kilometers is priced at €24,990. As a result, these prices make it one of the most affordable EVs in Europe and put pressure on rivals like the Dacia Spring and other upcoming budget EVs from legacy automakers. It also highlights the large price difference between BYD and Tesla (TSLA), which is increasing the competitive pressure on more expensive EV brands.
Interestingly, BYD says that the Dolphin Surf is built on its advanced e-Platform 3.0 and uses the company’s Blade battery, which improves safety, reduces weight, and adds strength to the car’s structure. The vehicle also includes a compact eight-in-one power system, a rotating touchscreen, adaptive cruise control, and wireless phone charging. This has led analysts to predict that BYD’s pricing will push European carmakers to speed up their own affordable EV launches and could force changes in local policies to protect European automakers.
Is BYD a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BYDDF stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average BYDDF price target of $66.88 per share implies 17% upside potential.
