TECH - Warren Buffett-Backed BYD Faces $12B Selloff Amid Doubts Over Sales Targets And Smart-Car Capabilities: 'The Growth Profile...Is Being Questioned' | Benzinga
The growth status of Chinese EV manufacturer, BYD Co. (OTC:BYDDF), is under a cloud of uncertainty following a $12 billion selloff. Concerns regarding the company’s sales targets and its ability to compete in the realm of smart cars have been cited as the key reasons behind the selloff.
What Happened: BYD’s Hong Kong-listed shares witnessed a 12% dip in November, spurred by worries over its ability to meet sales expectations in a volatile market environment, Bloomberg reported. The company’s capability to deliver intelligent, connected offerings, especially in the face of competition from newcomers like Huawei Technologies Co., has also been scrutinized.
Xiadong Bao, a fund manager at Edmond de Rothschild Asset Management, voiced concerns over BYD’s growth trajectory. He pointed out that Huawei’s entry into the electric vehicle (EV) sector could potentially expedite the launch of new Chinese products, thereby leaving BYD in a vulnerable position due to its lagging technology.
"The growth profile of BYD is being questioned," Bao said.
See Also: Top Wall Street Technical Analyst Thinks Tesla Cybertruck Is Cool
Despite posting record sales in October, BYD’s market turned bearish quickly as the company resorted to higher discounts to drive ...