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BYD takes on the Tesla Model S with sculpted 1000HP U7 sedan as EU sends it state subsidy inspectors

The U7 sedan is being tested in freezing temps (image: BYD)
The U7 sedan is being tested in freezing temps (image: BYD)
Europe is sending factory forensic specialists to Chinese EV brands like BYD as part of its investigation to determine if the lower prices their vehicles command on the continent are due to illegal state subsidies. In the meantime, BYD just unveiled its direct Tesla Model S competitor, after encroaching on the Model 3 and Model Y turf already.

In a surprise move, world's biggest electric car maker BYD announced a direct Tesla Model S competitor under its performance Yangwang brand. The U7 sedan will be powered by electric motors with a total output of over 1000HP, taking the Model S head on.

By head on, BYD means a very aggressive front styling as well as the signature protrusion at the car's roof front that houses the driver assist cameras, sensors, and LiDAR. The U7 sedan is built on the new dedicated BYD e4 EV platform that applies precise vector control to four independent motors.

The e4 platform is also behind Yangwang's first commercial vehicle, the big luxury U8 off-roader that seems to be designed to take on industry staples like the Land Cruiser and which went on sale back in September for a price close to $150,000. The U7 sedan will be in the same million-yuan class, with a price of about $140,000, so it has to offer much more than simply power output if it wants to take on the Tesla Model S which costs a third less in its home turf.

Ultra competitive EV pricing is one of the reasons why the European Commission launched a thorough investigation into the sales and manufacturing practices of Chinese automakers like BYD, SAIC, or Geely back in October. The investigation is expected to last more than a year and determine if Chinese car manufacturers receive unauthorized state subsidies allowing them to sell their EVs in Europe at prices that are about 20% less than other brands. 

As part of the proceedings, the EU is now sending inspectors to BYD and other factories in order to follow the whole production and financing process and determine if it needs to slap tariffs or take other measures against the onslaught of Chinese electric cars in Europe. They currently stand at 8% of the local EV market and are projected to balloon to 15% in 2025, riding on the wings of models like the BYD Atto 3.

In the meantime, Chinese EV makers are pouring a lot of marketing resources into the European market with BYD just becoming the first official electric mobility sponsor of the UEFO Euro 2024 championship. 

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 01 > BYD takes on the Tesla Model S with sculpted 1000HP U7 sedan as EU sends it state subsidy inspectors
Daniel Zlatev, 2024-01-14 (Update: 2024-01-14)