As many investors already know, Chinese auto and battery manufacturer BYD Co. (BYDDY, BYDDF) wants to spin off its battery unit into an IPO before 2022. I strongly agree with this decision and believe it will benefit current shareholders. Below we will explore my thinking on why I believe BYD is coming to this decision, and what investors should do if they find themselves holding both BYD's battery business and their passenger car manufacturing business under two separate tickers.
Image: BYD.com
Chinese Auto Sales Flattning: BYD's Sales Numbers
BYD's auto sales are not in