Key Highlights
BYD (OTC: BYDDY) is currently the world’s largest electric vehicle (EV) seller, expanding its reach across nearly every continent, while Tesla (NASDAQ: TSLA) aims to transform from a car manufacturer into an integrated tech company focusing on autonomous driving and artificial intelligence. Both companies are facing rising competition in the EV market.
As of December 17, 2023, BYD has experienced a 32.6% year-over-year profit decrease, prompting a 16% reduction in its 2025 sales target. However, BYD still anticipates doubling its EV and hybrid car exports. In contrast, Tesla’s stock, trading at a high price-to-earnings ratio of over 300, has remained relatively flat over the past 12 months.
BYD offers a more affordable pricing structure due to its control over the entire battery and semiconductor supply chain, providing it an edge over luxury brands like Tesla. Observations indicate that BYD presents more global momentum and lower execution risk compared to Tesla, making it a more compelling buy for investors at this time.
