Hong Kong-listed BYD Co. Limited (HK:1211) confirmed yesterday that its Mexico plant plans are still on track, dismissing rumors of a delay. Earlier in the day, Bloomberg reported that BYD could delay its Mexico plant investment to observe the results of the November elections in the U.S. BYD shares were down 0.42% as of writing.
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Based in China, BYD manufactures electric vehicles (EVs) and batteries for the global markets.
BYD Remains on Track with Mexico Plant
According to a statement, BYD Americas head Stella Li confirmed that the company remains on track with its Mexico investment. She further stated that Mexico is a highly important market for BYD. The company also clarified that the upcoming Mexico plant is intended to manufacture vehicles for domestic sales rather than for the U.S. or other export markets. In March, it was reported that BYD is considering a location near the city of Guadalajara.
Meanwhile, Tesla (TSLA) confirmed in July that it will pause further investments in its planned Mexico factory until after the U.S. election. This is mainly due to uncertain political risks from potential tariffs on goods made in Mexico.
Mexico is a key location for foreign automakers due to its proximity to the U.S. and its role in the North American free trade agreement.
BYD Targets North American Market
BYD is focused on growing its footprint in the North American market. In June 2023, the company achieved a key milestone by delivering its first 100 Yuan Plus SUVs in Mexico. Further, in May 2024, BYD introduced its inaugural pickup truck, BYD SHARK, to the Mexican market. This marked the pickup truck’s official launch outside of China.
Moreover, BYD is reportedly eyeing the Canadian market, even as the country is implementing high tariffs on vehicles imported from China.
Is BYD a Good Stock to Buy Now?
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by all Buy recommendations from 10 analysts. The BYD Co. share price target is HK$336.64, which implies 43.2% upside potential from the current trading level.
