Mercedes's High-End Focus Sweetens Outlook -- Market Talk

Dow Jones2023-04-21

0826 GMT - Mercedes-Benz's products overlap little with BYD and Tesla, which should ease price pressure on the German company in China, where manufacturers are cutting prices to compete, Stifel says in a note. In a solid first quarter, the luxury-car maker's top-end model sales increased 18%, while sales of Tesla's priciest models fell 27%, Stifel says. Solid first-quarter results might not be a good indicator for the performance in the second half, when pricing pressure should intensify for car makers with significant exposure to China, where local player BYD is grabbing market shares with unprecedented speed, the analysts say. "However, the attractiveness of the Mercedes investment case is partially that the strategy is to move away from Tesla." (david.sachs@wsj.com)

(END) Dow Jones Newswires

April 21, 2023 04:27 ET (08:27 GMT)

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