Just over a year ago, we predicted investors and car buyers would be hearing a lot more about Chinese manufacturer BYD (1211:HKG) over the coming months.
Fast-forward and the Chinese EV maker has seen its annual revenue top the $100 billion mark for the first time, beating estimates and leaving its big rival, Elon Musk-owned Tesla (TSLA:NASDAQ), eating its dust.
Sales rose 29% last year to $107 billion against Tesla’s $98 billion, while net income rose 34% to $5.56 billion, below the US firm’s $7.1 billion but above the consensus.
BYD’s strong results stem from increased demand for plug-in hybrids in its domestic market and its recent development of a new battery charging system which allows customers to charge their vehicles within minutes.
At the time of writing, BYD shares were up more than 50% year-to-date while Tesla’s shares were down 32% on the year and down 50% from their highs.
After Tesla saw its unit sales drop for the first time last year, analysts have lowered their forecasts for first-quarter 2025 deliveries with US bank JP Morgan slashing its estimate by 20% from 444,000 to 335,000, way below the mean estimate of 430,000 vehicles.
That would represent an 8% year-on-year decline and would be the lowest level of quarterly deliveries since the third quarter of 2022.
Dan Coatsworth, investment analyst at AJ Bell, said: ‘So much for Elon Musk having the magic touch thanks to his new-found friendship with Donald Trump. Telsa is facing significant competition and an electric vehicle market that’s hit a speedbump with its growth.
‘Europe has been problematic for Tesla due to a brand backlash, potentially linked to Musk spending more time on politics than looking under the bonnet of a car.
‘Rival car companies have also been pushing their electric models hard, reminding drivers they’ve got plenty of choice. In China, data restrictions have hindered Tesla’s progress.’
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