The Chinese electric vehicle (EV) manufacturer BYD Co. (BYDDY), according to a Bloomberg article, has no immediate intentions to join the US passenger car market and faces fierce competition from the US-based Proterra in the US bus battery electric vehicle market. This is partially due to the anti-Chinese mentality prevalent today. Nonetheless, BYD is increasing its activities in Norway, Denmark, the United Kingdom, Thailand, and Australia. Also, the corporation is expanding its inventory of new-energy vehicles in China.
BYD has announced a considerable increase in its fourth-quarter profit, from 602 million in the same period last year to 7.3 billion. In addition, the company’s net income for the entire year of 2022 rose by 446% year-over-year to 16.6 billion. BYD sold around 1.86 million electric and plug-in hybrid vehicles in 2018, accounting for nearly 30% of China’s new-energy vehicle sales, whereas Tesla delivered 1.31 million EVs globally in 2022.
BYDDY Stock Forecast:
Investors may ask if BYDDY is a suitable stock to purchase. The efforts made by the company funded by Warren Buffett to develop new EVs and attract customers are positive, and the company was able to expand deliveries despite a difficult financial climate. But, the pricing war begun by Tesla in China may have some effect on BYD’s bottom-line growth. As of 2023, BYDDY stock has increased by almost 7%.
BYD Company Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of automobiles and related products in the People’s Republic of China and internationally.
The company operates through three segments: Secondary Rechargeable Batteries and Photovoltaic; Mobile Phone Components, Assembly, and Other Products; and Automobiles, Automobile-Related Products and Other Products. The company was founded in 1995 and is headquartered in Shenzhen, China.