NIO and XPeng Shares Slide after BYD Drops Ruthless Price Cuts

A weekend move by BYD (BYDDY) (BYDDF) to slash prices on some of its top-selling electric vehicles just sent tremors through the Chinese EV sector. While BYD is aiming to juice demand and protect market share, the knock-on effect was immediate: stocks of rival EV makers NIO (NIO), XPeng (XPEV), and Li Auto (LI) slid hard as Wall Street digested the deeper implications of yet another pricing offensive.

BYD Reignites China’s EV Price War

BYD announced double-digit percentage discounts across several models — including cars from its Ocean and Dynastyseries — with some vehicles now starting as low as 55,800 yuan ($7,770). These aren’t fringe models. These are high-volume staples.

Why does this matter? Because price cuts like these pressure everyone. Margins get thinner. Competitive gaps widen. And brand positioning weakens for those who can’t keep up. That’s why BYD’s stock fell 8.6% in Hong Kong Monday — and why U.S.-listed Chinese EV stocks dropped 2–3% in Tuesday premarket trading.

NIO, XPeng, Li Auto: Who’s Most Exposed?

XPeng and NIO are particularly vulnerable here. Both companies are still scaling and not yet consistently profitable. NIO, already battling demand softness and thinning margins, faces a tough path defending its premium branding while competing on price. XPeng, known for its autonomous tech edge, risks getting overshadowed by cheaper alternatives.

Li Auto, on the other hand, fared slightly better in the market reaction — up 0.8% in early trading. Why? Possibly due to its hybrid-focused lineup and a more diversified revenue stream. But if the price war deepens, no one’s really safe.

What’s Driving this EV Shakeout?

This isn’t just about car prices. It’s about China’s sluggish consumer recovery, oversupply, and razor-thin margins. A glut of models and intense competition are forcing brands to sacrifice short-term profits to win volume. That strategy only works if you’re BYD — with scale, supply chain control, and government alignment on your side.

For everyone else, it’s a squeeze.

TipRanks Ratings Show BYD Holding the Strong Buy Crown

For anyone tracking the key players in this EV slugfest, the TipRanks Stock Comparison Tool offers a useful snapshot of how analysts are stacking them up. And right now, BYD is wearing the crown.

Its ticker BYDDF holds a coveted Strong Buy rating from analysts, with a 13.9% upside based on a price target of $67.77. Add to that a perfect Smart Score of 10, and it’s clear analysts are betting on BYD’s ability to outmuscle rivals — even while slashing prices.

Compare that with XPeng (XPEV) and Li Auto (LI) — both flagged as Moderate Buys. XPeng boasts the highest upside of the bunch at 31.8%, but its negative P/E ratio of -26.83 shows the profitability mountain it still has to climb. Li Auto looks more stable with a positive P/E of 27.55, but its Smart Score of 5 hints at weaker sentiment or momentum.

Then there’s NIO, which holds a Hold consensus and the lowest Smart Score of the group. Even though analysts project a 32.7% upside, confidence clearly isn’t high. Its P/E ratio of -2.49 adds to the concern — a sign that profitability remains elusive.

It seems like BYD is not just leading the price war — it’s dominating the analyst scoreboard too.