"In the first half of this year, China's EV giant BYD made $2.1 billion on revenue of $52 billion. The net income was up 14% from the previous year. The numbers demonstrate the remarkable success of BYD. Rival Tesla ( NASDAQ: TSLA) posted relatively similar results for its first half. But BYD sold 4.2 million vehicles last year. Tesla sold 1.8 million. And BYD's unit sales are rising, while Tesla's are falling."
"One argument that BYD's figures are skewed is that it is the largest EV company in China, which is the largest EV market by far. However, it has expanded and is beating Tesla in one of the world's largest markets. BYD sales in Europe in July reached 13,503, representing a 225% increase. Tesla's were 8,837, down 40%. And, Tesla is losing market share in China, while BYD's is growing."
"BYD has presented another challenge to Tesla. It has moved beyond China and established beachheads in Southeast Asia, Europe, and South America (Brazil is the sixth-largest car market). Tariffs have somewhat hindered BYD's sales in the EU. Its July figures for the regions show it has begun to overcome those. Its factory in Hungary has helped it avoid the tariff challenge."
BYD generated $52 billion revenue and $2.1 billion net income in the first half, with net income up 14% year-over-year. BYD sold 4.2 million vehicles last year and is increasing unit sales, while Tesla sold 1.8 million and is seeing declines. BYD's July Europe sales rose 225% to 13,503 units, while Tesla's declined 40% to 8,837, and BYD is gaining share in China. Five of the world's top ten EV companies are Chinese, including Geely, Changan, Li Auto, and Chery. BYD expanded into Southeast Asia, Europe, and South America and is mitigating EU tariffs with a Hungarian factory. Tesla faces reputational headwinds for Musk and investor expectations tied to AI and robotics.
Read at 24/7 Wall St.
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