Here's Why Warren Buffett-backed BYD Stock Is A Better Electric-vehicle Bet Than Tesla
Portfolio Pulse from Anan Ashraf
BYD Co Ltd (OTC:BYDDY) is gaining attention as a strong competitor to Tesla Inc (NASDAQ:TSLA) in the electric vehicle market. BYD, which produces BEVs, PHEVs, and FCEVs, is close to surpassing Tesla's BEV sales, with a 70% year-over-year rise in vehicle sales. Despite similar operating profits, BYD's market cap is significantly lower than Tesla's, attributed to regional market differences. Over 90% of analysts rate BYD as a 'buy', and both companies are considered the only two investable EV companies by Future Fund Managing Partner Gary Black.
December 23, 2023 | 5:26 pm
News sentiment analysis
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NEUTRAL IMPACT
Tesla faces increasing competition from BYD in the EV market. Despite this, Tesla maintains a significantly higher market cap and is recognized for its technological advancements.
While Tesla is facing competition from BYD, its larger market cap and technological edge, such as in energy storage and self-driving features, may help it maintain its market position in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
BYD is showing strong growth in the EV market, with sales nearing Tesla's and a significant year-over-year increase. Analysts are highly positive on the stock, with over 90% rating it as a 'buy'.
The positive sales figures and the high percentage of 'buy' ratings from analysts suggest a strong short-term bullish sentiment for BYD. The potential to surpass Tesla in BEV sales could further boost investor confidence.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100