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BYD Earnings Growth Set To Accelerate As Tesla Rival Surges On Big Moves

  • 23.03.2025 16:53
  • msn.com
  • Keywords: High Risk, Success

BYD, the world’s largest EV maker, expects Q4 earnings to surge 69% and revenue up 50%, driven by record vehicle sales surpassing Tesla in BEV units. The company is also rolling out advanced self-driving tech and ultra-fast charging, poised to accelerate its growth as a Tesla rival.

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Estimated market influence

BYD

BYD

Positivesentiment_satisfied
Analyst rating: Strong buy

The article discusses BYD's earnings growth, market leadership in EVs, and technological advancements.

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Tesla is facing challenges with declining stock prices and reduced earnings estimates.

Context

Analysis of BYD Earnings Growth and Market Implications

Earnings Growth

  • Q4 2024 Earnings Projection:
    • Expected to soar by 69%, reaching 69 cents per share.
    • This would mark the best growth in five quarters.
    • Revenue projected to jump 50% year-over-year to $37.3 billion, continuing a streak of faster growth.

Market Leadership

  • EV Sales:
    • BYD sold 1,524,270 vehicles in Q4, up 161% YoY, driven by PHEV demand.
    • BEV sales grew 13% to 595,413 units, outpacing Tesla's quarterly BEV sales by nearly 100,000 units.
    • BYD is on track to lead the BEV market in Q1 and likely dominate in 2025.

Technological Advancements

  • Self-Driving Rollout:

    • BYD announced a rollout of advanced driver-assist systems (ADAS) across its lineup, with high-end models featuring Lidar.
    • BYD's "God's Eye" system aims to compete cost-effectively with rivals like XPeng and Tesla.

  • Charging Technology:

    • Launched a 1,000-kilowatt charger, capable of delivering a full charge in under 10 minutes, twice the power of Tesla's V4 Supercharger.
    • The Super e-Platform includes Blade batteries, high-performance motors, and silicon carbide power chips.

Competitive Landscape

  • Tesla Comparison:
    • Tesla stock has struggled, down 38.4% in 2025 as of March 21, with analysts cutting delivery estimates.
    • BYD's aggressive moves in self-driving and charging tech position it as a growing threat to Tesla's dominance.

Stock Performance

  • BYD Stock:

    • Reached a fresh high of 54.55, but ended the week at 50.89, up 1.6%.
    • YTD gain of 49.7%, with volatility indicated by an ATR of 5.87%.

  • Tesla Stock:

    • Extended a losing streak, down 0.5% to 248.71, but showed signs of stabilization after a three-day win streak.
    • Struggling below key technical levels (200-day and 50-day lines).

Long-Term Effects and Industry Impact

  • BYD's rapid growth and technological advancements are reshaping the EV market, particularly in China.
  • The company's vertical integration and cost-effectiveness could drive long-term dominance in the global EV sector.
  • BYD's innovations in charging and self-driving technologies may set new industry standards and influence regulatory frameworks.

Strategic Considerations

  • BYD's focus on affordability and innovation positions it as a formidable competitor to Tesla, particularly in emerging markets.
  • The company's ability to scale production and maintain profit margins will be critical for sustained growth.