Today's surge in BYD Company's stock price in China can be attributed to...
Build Your Dreams (BYD) (BYDDY 1.11%) saw a 3% surge in its value through 11 a.m. ET on Tuesday, following a notable achievement - surpassing a significant production milestone that sets it apart from its electric vehicle (EV) rival, Tesla (TSLA 8.22%).
According to recent reports from Elecrek, BYD's car manufacturing facility in Xi'an, China, surpassed the production of 1 million vehicles within 2024's first 11 months.
A Head-to-Head EV Race
Why does this matter? Several reasons. First, BYD surpassed Tesla in terms of quarterly deliveries over a year ago and now boasts the most productive EV manufacturing facility in China - a title held despite Tesla's massive factory in China. Interestingly, BYD's Xi'an facility is already one-third larger and accounts for only a third of BYD's total production capacity in the country.
BYD also plans to expand production to Brazil, Hungary, India, Indonesia, Mexico, Thailand, the USA, and Uzbekistan. By 2024, the company aims to surpass 4 million EVs produced worldwide.
As Elecrek further explains, BYD's global reach and production capacity make it a significant competitor on the global stage, even challenging Tesla in various markets.
Is BYD Stock Worth Investing In?
With a market cap of $108 billion, an annual profit of $4.7 billion, and $5.4 billion in annual free cash flow, BYD stock costs only 23 times its annual earnings and 20 times its annual free cash flow (FCF). This is significantly cheaper than Tesla's 117 P/E ratio and its price-to-FCF ratio of 413.
Given a 20% growth rate and a modest 1.3% dividend yield (unlike Tesla, which pays no dividend), BYD stock appears to be reasonably priced to me.
In conclusion, if you're looking for cheap, well-performing stocks to invest in, BYD might be worth considering.
In light of BYD's impressive production milestone and competitive edge over Tesla, investors might be interested in diversifying their finance portfolios by considering investments in BYD stock. With its lower price-to-earnings and price-to-free-cash-flow ratios compared to Tesla, BYD could be a promising choice for those seeking value in the finance market.
Given BYD's expansion plans and its significant presence in various global markets, investing in this company could be an appealing opportunity for individuals looking to invest money in the finance sector, particularly in the electric vehicle industry.
