Shares of Chinese EV major BYD (OTC:BYDDF) are ticking lower today despite the company’s achievement of a significant production milestone.
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Indeed, its six millionth vehicle rolled off the production line at its facility in Zhengzhou, China. Impressively, the company achieved this feat within three months of hitting the five million vehicle mark. Moreover, BYD hit a monthly sales record of over 300,000 new energy vehicles last month.
The firm has been focused on ramping up its global footprint. Utilizing a dual approach of exports and local production, BYD’s electric public transport solutions are now present in over 70 countries.
Additionally, the company launched its Han sedan, a popular EV model in China, in the United Arab Emirates (UAE) this week. BYD has also made its ATTO3 model available for sale in the country. Earlier this year, it disclosed plans to introduce four models in the UAE by the end of 2023, according to CNBC.
While auto sales in China have been robust, Chinese EV makers are eyeing the Middle East as the next growth frontier amid rising tensions between the U.S. and China.
Is BYD a Good Stock to Buy Now?
Overall, the Street has a Strong Buy consensus rating on BYD, and the average BYDDF price target of $49.99 implies a hefty 68.6% potential upside in the stock. That’s on top of a nearly 31% jump in the company’s share price over the past year.
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