According to a Wall Street Journal report, China’s BYD, one of the leading EV (Electric Vehicle) makers, plans to put billions of dollars into strengthening its competitive positioning in commercial BEVs (Battery Electric Vehicles). The move will intensify competition for (NASDAQ:TSLA), especially in China, the world’s largest EV market.
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BYD is China’s top BEV and plug-in hybrid maker. It is aggressively increasing its global footprint and has emerged as a formidable competitor for Tesla. Per the report, BYD expects to invest $20 billion over the next three years to introduce new commercial-vehicle models in China, Japan, and Europe.
Per Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker, global EV sales crossed 10 million in 2022, with BYD leading the market with a 19.8% share in Q4. Tesla stood second with a 12.1% market share. BYD, with its significant investments and a renewed focus on commercial BEVs, could likely intensify competition in the EV space, especially in China.
Notably, Tesla, which delivered a record 1.31 million vehicles in 2022, lowered its selling prices in China to drive demand amid COVID-led restrictions and macro uncertainty. While competition is heating up for TSLA, let’s look at what the street has planned for this EV giant.
Will Tesla Stock Go Up in 2023?
Tesla stock has gained approximately 48% year-to-date. Further, most analysts maintain a bullish outlook on TSLA. It has 21 Buy, nine Hold, and three Sell recommendations, translating into a Moderate Buy consensus rating. Meanwhile, analysts’ price target of $211.93 implies 16.45% upside of 7.57%.
Tesla’s market leadership in fully electric vehicles, strong demand, and secular tailwinds act as long-term growth catalysts. While analysts are cautiously optimistic about TSLA due to macro uncertainty, hedge funds bought 780.8K shares of Tesla last quarter. Moreover, TSLA stock has an Outperform Smart Score of eight on TipRanks.
