Citi released a report on BYD COMPANY (01211.HK)  -7.000 (-1.646%)    Short selling $1.23B; Ratio 16.311%   , which announced a fixed price policy for several models on May 23, effective until June 30, 2025. Based on Citi's estimates, the new discounts can reach up to RMB3,000 (approximately 1.5% of the suggested retail price).

Citi foresaw competitors to follow BYD's price reduction actions (Changan Automobile announced on May 24 a cash discount of RMB25,000 plus a RMB5,000 trade-in subsidy for Deepal-S07, and LEAPMOTOR (09863.HK)  -0.550 (-0.957%)    Short selling $37.37M; Ratio 4.986%   also announced fixed prices for C16/ C11).

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In Citi's projections: (1) after the price reduction over the weekend (May 24/ 25), BYD dealership store footfall may have spiked by 30-40% compared to the previous weekend; (2) ICE sales penetration rate may tumble by 3Q25; (3) the sales growth driven by BYD and the NEV segment due to price cuts may favor the shipment visibility of Hesai (HSAI.US)      and HORIZONROBOT-W (09660.HK)  +0.810 (+11.392%)    Short selling $254.70M; Ratio 7.146%   in 3Q25; (4) despite market concerns about BYD competitors' market share being eroded, Citi expected robust sales growth for NEV companies with prices below RMB200,000, as competition remains relatively mild.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-27 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)