BYDDY - BYD: A Profitable EV Growth Play

2024-06-11 14:03:07 ET

Summary

• BYD is aggressively expanding into markets outside of China, posing a threat to Tesla and other companies with its affordable EV options.
• In May, BYD sold 37,499 electric vehicles abroad, showing a Y/Y increase of 267.5%.
• The Seagull EV could be introduced to Europe/the U.K. next year, potentially escalating a price war in the industry.
• BYD is massively undervalued with a price-to-revenue ratio of 0.7X and has considerable revaluation potential.

BYD Company Limited ( BYDDF ) is a leading Chinese electric vehicle brand that continues to see strong momentum in its core market in China as well as abroad. BYD is aggressively expanding, seeking markets in countries outside of China in a bid to establish itself as a leading EV brand with global appeal. While the company is entering new markets, growing its deliveries, and already posting profits, the Chinese EV brand is massively undervalued, in my opinion, especially with regard to Tesla, Inc. ( TSLA ). I believe the risk profile is very much skewed to the upside with BYD, especially as the company recently launched the highly competitive Seagull EV with a domestic price sticker of less than $10k and I believe investors are overly fearful of investing in Chinese EV companies!...

For further details see: