BYD’s Dominance Is Taking Its Toll on Smaller Chinese EV Rivals

(Bloomberg) — Chinese electric-car maker BYD Co.’s relentless growth is squeezing out smaller rivals, with Li Auto Inc. joining fellow upstart XPeng Inc. in releasing disappointing earnings.

In a stark highlight of their contrasting fortunes, BYD on Wednesday posted a 33% jump in second-quarter profit, while around the same time Li Auto posted a bigger-than-estimated 52% drop in earnings — sending its U.S.-listed shares tumbling. XPeng last week forecast third-quarter revenue well below analyst expectations amid a bruising price war in China. Neither Li Auto or XPeng have managed to break into the top 10 largest Chinese EV-makers by sales.