5 Reasons to Buy BYD Stock Like There's No Tomorrow

Core Viewpoint - BYD Company (BYDDY) is presented as a compelling investment opportunity due to its strong market position, diversified product offerings, self-sufficiency, profitability, and growth potential in the electric vehicle (EV) sector [2][4][5]. Group 1: Company Overview - BYD is primarily a manufacturer of affordable electric vehicles, with significant sales in China and a global presence [4]. - In the previous year, BYD sold 4.25 million cars, including nearly 2.5 million hybrids and approximately 1.8 million all-electric vehicles, generating $108 billion in revenue, a 23% increase year-over-year, with a net income of $5.6 billion [4]. Group 2: Competitive Position - BYD has emerged as the largest player in the global EV market, controlling about 20% of the total market, surpassing Tesla in battery-powered vehicle sales [7]. - The company’s diverse product range includes hybrids, all-electric vehicles, buses, forklifts, high-speed trains, energy storage solutions, and lithium-based batteries supplied to major automakers like Ford, Toyota, and Tesla [9][10]. Group 3: Self-Sufficiency and Profitability - BYD's vertical integration allows it to manufacture nearly all components required for its vehicles, including batteries, which enhances flexibility and profitability [11][13][14]. - The company reported a net income of $5.6 billion, reflecting a 34% increase from the previous year, positioning it favorably for future investments and financial maneuverability [15]. Group 4: Growth Potential - The global EV market is projected to grow at an annualized rate of 25.3% through 2035, with BYD expected to benefit significantly from this trend, particularly in China where hybrids and battery-powered vehicles are anticipated to make up 80% of new car sales by 2030 [17][18]. - Despite a decline in interest in EVs among U.S. consumers, international demand remains strong, indicating a robust growth trajectory for BYD [17]. Group 5: Investment Considerations - BYD is relatively underappreciated in the U.S. market, with limited ownership among U.S. investors, presenting a unique opportunity for diversification [19]. - Notably, Berkshire Hathaway holds a $2.4 billion stake in BYD, underscoring the company's potential and credibility in the investment landscape [20].