Shares of the Hong Kong-listed Chinese electric-vehicle firm are up 1.7% this month, outperforming Tesla’s 17% plunge and declines in other peers as well. While shares of Elon Musk’s firm are still up by more than double the rise in BYD this year, signs are pointing to further gains for the latter.
BYD sold a record total of 822,094 vehicles in the latest quarter, including hybrids, helping to cement its lead as China’s best-selling car brand. Moreover, BYD seems to be making more money per vehicle, despite price competition.
Why it matters
Profit per car, excluding the impact of the company’s electronics unit (285), rose as much as 46% versus the previous quarter. BYD is rapidly closing in on Tesla Inc. as the world’s biggest seller of pure electric vehicles, with surging profits underscoring its sales clout despite intensifying competition at home.