TSLA - BYD's Valuation Looks Attractive Relative To Tesla's

2024-04-04 04:30:50 ET

Summary

• BYD has been gaining ground on Tesla, and is now one of the world’s largest producers of new energy vehicles (NEVs).
• In Q4 2023, BYD actually surpassed Tesla for the first time, and delivered more battery-electric vehicles (BEVs). However, new data shows that Tesla reclaimed its BEV crown during Q1 2024.
• Valuation metrics such as Price-to-Sales and Price/Earnings indicate that shares of BYD remain attractively priced, as underscored by Berkshire Hathaway’s continuing investment in the company.

Twelve years ago, Elon Musk scoffed at Chinese EV manufacturers. Asked about China’s BYD ( OTCPK:BYDDY ), Musk chuckled and responded , “Have you seen their car?”

Musk isn’t laughing anymore. In fact, he recently sounded the alarm on the growing influence of Chinese EV makers, saying, “If there are no trade barriers established, they will pretty much demolish most other companies in the world.”...

For further details see: