Electric vehicle maker BYD (BYDDF) managed to make a splash earlier today with news about its new charging technology that will deliver a much faster charging experience for drivers. That was quickly followed up by news that it will continue to be a burr under Tesla’s saddle thanks to another plant in Europe to follow. The news was overshadowed by the charging win, but gave BYD an extra 2.5% in Tuesday afternoon’s trading.
Already, BYD has—or rather, has plans for—two plants in Europe. Its first plant in Hungary will fire up operations starting fairly soon, while a second plant in Turkey is not too far behind, set to come online in 2026. Now, BYD wants to get a third plant up and running, and it is currently scouting locations to set up such an operation.
It has several criteria, perhaps not least of which is that the country in question be “China-friendly.” Indeed, some countries have already removed themselves from the running on that basis, including Italy, which supported European Union tariffs on Chinese electric vehicles, reports noted. Other reports suggested that Germany was the current front-runner, but others noted the country’s low flexibility, low productivity, and high costs as likely reasons it was not in front.
Troubling Tesla
A separate report, meanwhile, pointed out how BYD is constantly undercutting Tesla (TSLA) the world over. Perhaps the biggest such measure is with price. There are 10 different countries in which both BYD and Tesla sell cars, and in each of these, BYD is the lowest-cost option, sometimes by a wide margin. For instance, in China, a Tesla starts at $32,438. A BYD, meanwhile, starts at $9,614.
The list goes on from there. Thailand, Mexico, Chile, South Korea, Hong Kong, and several other countries can see differences in pricing by as much as 50%, or even more. In Thailand, for instance, the $47,133 Tesla is blown away by the $16,811 BYD. Naturally, there are other differences, too, but when the price tags are that much different, there will be those who ignore any differences in favor of getting a good deal.
Is BYD Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BYDDF stock based on seven Buys assigned in the past three months, as indicated by the graphic below. After a 92.75% rally in its share price over the past year, the average BYDDF price target of $58.94 per share implies 11.21% upside potential.
See more BYDDF analyst ratings
Questions or Comments about the article? Write to editor@tipranks.com