Chinese electric vehicle maker BYD Co (OTC: BYDDY) has raised prices of its cars by up to $950, Reuters reported on Wednesday, citing the company’s statement posted on its official Weibo account.
What Happened: The price hikes come into effect from Wednesday and are being taken to offset the rising cost of raw materials.
BYD is backed by Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett.
The Shenzhen, China-headquartered company competes with Tesla Inc (NASDAQ: TSLA) and local EV startups such as Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV) and Li Auto Inc (NASDAQ: LI).
Last month, BYD sold over double the number of electric vehicles than Nio, Xpeng and Li Auto combined.
See Also: Tesla Hikes Prices In Both US, China For The Second Time Within A Week: All You Need To Know
Why It Matters: Inflationary pressures are forcing automakers to adjust prices. Tesla on Tuesday hiked prices for the second time in less than a week. The moves followed CEO Elon Musk’s tweet warning the EV maker was facing significant inflationary pressure on raw materials and logistics.
Volkswagen Group (OTC: VWAGY) said on Tuesday it is shifting more production out of Europe to China, North America and Latin America to cope with supply chain issues stemming from Russia’s invasion of Ukraine.
Price Action: BYD’s stock OTC closed 3.4% higher at $44.7 a share on Tuesday. The stock is down 36% so far this year.
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