Mohit Oberoi
BYD is the largest seller of NEVs (new energy vehicles) in China. The company, which is backed by Warren Buffett’s Berkshire Hathaway is now going global and has received a good response in international markets.
In November, BYD began deliveries of its Atto 3 in Thailand. The company has now paused new orders in the country after the initial 10,000 cars. It is not unusual for companies to pause preorders and earlier this year Ford stopped taking preorders for its F-150 Lightning. The ICE (internal combustion engine) version of the F-150 has been North America’s best-selling pickup for decades.
Coming back to BYD, the company overtook Tesla and became the largest seller of NEVs in the first half of the year. It has continued to build on the lead and in the third quarter and delivered 538,704 NEVs, which was way ahead of Tesla. BYD’s deliveries are hitting new records almost every month.
In November, it produced a record 230,129 electric cars. The company’s deliveries surpassed 200,000 for the first time in September only.
Meanwhile, after becoming the dominant EV player in China, BYD has been expanding overseas. It sells cars in many global markets including Australia, New Zealand, and Israel. It recently also forayed into Malaysia. The company also intends to sell cars in Japan from early next year.
BYD Now Targets International Markets after Beating Competition in China
BYD is now targeting international markets. It is also expanding its presence in Europe and is looking to set up manufacturing plants in the continent. The company is also looking to expand its product portfolio and would launch two luxury models, one sports car and one SUV in 2023.
In August BYD began delivering The BYD Seal which is similar to Tesla’s best-selling Model 3 sedan. However, the model is priced at $10,000 below that of Tesla’s Model 3. BYD expects to sell 4 million Seal cars in 2023.
Tesla Stock Has Fallen in 2022
Notably, Tesla stock has crashed over the last couple of months. Along with Elon Musk’s Twitter acquisition, concerns over demand for Tesla cars is adding to the sell-off. Tesla is reportedly cutting production in China due to tepid demand for its electric cars.
Musk has also lost popularity since he acquired Twitter. Many analysts have turned cautious about Tesla stock, at least in the short term.
Meanwhile, Morgan Stanley analyst Adam Jonas continues to remain bullish on Tesla stock and believes that there would be a good buying opportunity near his bear case target price of $150. We have a guide on how to buy Tesla stock.
Warren Buffett has Sold Some BYD Shares
Warren Buffett invested in BYD in 2008. However, he has sold some BYD shares this year and Berkshire now holds around 16% stake in the company, which is below the 20% it held previously.
BYD Executive Vice President Stella Li said in an interview said that Buffett is only booking profits which is natural considering the massive rise in BYD stock. She also said that Buffett “loves” the company and the management and is not “abandoning” BYD.
Meanwhile, Buffett has otherwise been a net buyer of stocks this year. He bought oil stocks including Chevron and Occidental Petroleum in 2022. Buffett is among the best value investors of all time and looks for undervalued companies which have a strong moat. We have a guide on the undervalued stocks to watch in 2022.
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This article was written for Business 2 Community by Mohit Oberoi.
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