If there’s anything about BYD ‘s past that could predict its future, it’s being slow and steady. The nearly 30-year-old company may have beat Tesla in total car production in 2023 , but it still only has one tenth the market value. Last year, Tesla’s shares roughly doubled in price. BYD’s rose by about 10%. Bernstein didn’t even initiate coverage of BYD until September, with an outperform rating and price target of 359 Hong Kong dollars. The upside as of Thursday’s close was 71% — far more than the 42% printed at the time of coverage initiation. Are there problems, such as oversupply, the market is overlooking? News that its famous early investor, Warren Buffett’s Berkshire Hathaway, keeps trimming its stake for unspecified reasons doesn’t help foreign investor sentiment. One factor behind the low valuation is that BYD isn’t dominating flashy markets like Norway that “would probably have a greater impact on stock price” than electrifying cars in Brazil, said Taylor Ogan, CEO of Snow Bull Capital. Another issue is lack of financial research analysts, especially covering both Tesla and China, he said. BYD trades in Hong Kong, and on the Shenzhen exchange in mainland China. The company primarily sells its passenger cars in China, with some expansion to regions such as southeast Asia and Europe, but not North America. …
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[mwai_chat context=”Let’s have a discussion about this article:nnIf there’s anything about BYD ‘s past that could predict its future, it’s being slow and steady. The nearly 30-year-old company may have beat Tesla in total car production in 2023 , but it still only has one tenth the market value. Last year, Tesla’s shares roughly doubled in price. BYD’s rose by about 10%. Bernstein didn’t even initiate coverage of BYD until September, with an outperform rating and price target of 359 Hong Kong dollars. The upside as of Thursday’s close was 71% — far more than the 42% printed at the time of coverage initiation. Are there problems, such as oversupply, the market is overlooking? News that its famous early investor, Warren Buffett’s Berkshire Hathaway, keeps trimming its stake for unspecified reasons doesn’t help foreign investor sentiment. One factor behind the low valuation is that BYD isn’t dominating flashy markets like Norway that “would probably have a greater impact on stock price” than electrifying cars in Brazil, said Taylor Ogan, CEO of Snow Bull Capital. Another issue is lack of financial research analysts, especially covering both Tesla and China, he said. BYD trades in Hong Kong, and on the Shenzhen exchange in mainland China. The company primarily sells its passenger cars in China, with some expansion to regions such as southeast Asia and Europe, but not North America. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
