BYD is becoming an increasingly competitive company for Tesla, with even CEO Elon Musk recently apologizing for underestimating it in the past and acknowledging its qualities. The articles mention the two automakers on the announcement that both achieved record shipments of their cars made in China in the second quarter. Tesla sold nearly 19% more cars made in China in June this year than it did a year ago. Its Chinese rival wit models Ocean and Dynasty, saw sales rise more than 88% year-on-year in June, bringing sales to around a quarter of a million. The Chinese government has also shown an interest in maintaining this trend to bolster the flagging economic recovery.
According to Citi Research, the company's estimated net profit per vehicle in the second quarter of this year will be 7.5 - 8 thousand yuan (US$1,034 - 1,103), an improvement from the 7 - 7.5 thousand yuan (US$965 - 1,034) recorded in the first quarter of 2023. [1] BYD has the right momentum and the potential to stay high as long as it increases shipments of its vehicles and continues its current acceleration in exports. Over the past few years, BYD has emerged as one of the top Chinese automakers and is keen to maintain its position. It is very likely that Chinese carmakers will account for more than 50% of cars sold domestically due to their growing dominance in electric vehicles, which would give them a majority share of their own car market. [2] In recent years, VW and Toyota, which have been operating in joint ventures with Chinese partners, have led the top-selling brands, with BYD, Nio and Xpeng Motors now catching up.
BYD's stock performance over the past five years. (Source: Google)*
BYD to build new plant in Brazil
BYD, which based its name on the English phrase Build Your Dreams, will construct a new 3 billion real ($620.17 million) plant complex in Brazil. The three-plant complex will be built in the Camacari Industrial Park in the northeastern state of Bahia, where Ford built its vehicles until 2021. It is expected to begin operations in mid-2024 and will create approximately 5,000 new job positions. One plant will focus production on chassis for buses and electric vehicles, another on hybrid and electric cars, and a third plant will focus on processing lithium and iron phosphate for the overseas market.
* Past performance is no guarantee of future results.
[1,2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
