Core Insights - The stock price of BYD Company is influenced by several key factors, including its self-sufficiency in manufacturing, market dominance in electric vehicles, and the impact of competition on profit margins [1][2]. Group 1: Self-Sufficiency - BYD adopts a self-sufficient approach in automobile manufacturing, handling most of the production in-house rather than outsourcing [3][4]. - The company manufactures its own lithium-ion batteries, which are essential for electric vehicles, and owns transportation vessels for delivering vehicles internationally [4][6]. Group 2: Market Position - BYD has surpassed Tesla in total unit sales earlier this year and has outsold Tesla for four consecutive quarters, indicating its dominance in the electric vehicle market [6][7]. - The company's ability to manufacture and deliver vehicles efficiently positions it to maintain a competitive edge over rivals [7]. Group 3: Competition and Profit Margins - BYD's market share in China has decreased from 36.1% to 23.1% due to increased competition from new entrants like Geely, SAIC, and Xiaomi [8]. - The rise of competition has led BYD to discount its vehicles, resulting in a 33% decline in third-quarter profits compared to the previous year [8][9]. - Despite the expected growth of electrified vehicles in China's market, ongoing competition will continue to pressure BYD's profit margins [9].
3 Things Every BYD Investor Needs to Know