Chinese electric vehicle (EV) giant BYD Co. (BYDDY) has no immediate plans to compete with Tesla (TSLA) in the U.S. passenger car market, Bloomberg reported.
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Furthermore, BYD is having a hard time expanding its presence in the U.S. bus battery electric vehicle market. The company is facing strong competition from US-owned Proterra, partly due to the current anti-Chinese stance.
Nevertheless, BYD has been increasing its footprint in other countries, including Norway, Denmark, the UK, Thailand, and Australia. Meanwhile, the company is expanding its new-energy vehicle lineup in its home market, China.
Coming to the financials, BYD recently reported a significant increase in its fourth-quarter profit to ¥7.3 billion from ¥602 million in the last year’s quarter. Additionally, net income for the full year 2022 increased 446% year-over-year to ¥16.6 billion.
It is worth mentioning that BYD sold about 1.86 million electric and plug-in hybrid vehicles last year, which accounted for nearly 30% of China’s new-energy vehicle sales. On the other hand, Tesla globally delivered 1.31 million EVs in 2022.
Is BYDDY a Good Stock to Buy?
Warren Buffett-backed BYD’s efforts to launch new EVs to attract customers are encouraging. Also, the company was able to increase deliveries in 2022 despite the challenging macroeconomic environment. On the downside, the price war triggered by Tesla in China might impact the company’s bottom-line growth to some extent. So far in 2023, BYD stock has gained about 7%.
