BYD Stock Price Headed to $123
f you ever needed more proof that BYD (OTCBB: BYDDY) was the most powerful EV maker in the world, look no further than what happened on Monday.
The third best selling car brand in the world, BYD, made an announcement that sank every Chinese EV stock, including Geely (OTCBB: GELYY) and NIO (NYSE: NIO).
The announcement?
BYD is slashing prices by more than 30%, resulting in a renewed price war that could cripple the company’s competition. Indeed, with pricing on some models falling below $8,000, it’s going to be incredibly difficult for other EV makers in China to keep up. One of BYD’s most popular EVs, the Seagull hatchback will now have a sticker price of $7,780.
As a side note: if you ever wondered why Biden and Trump tariffed the hell of Chinese EVs, that’s why. If China’s biggest EV makers can’t keep up with BYD on pricing, there’s no way in hell U.S. EV makers can.
In any event, BYD’s announcement sent shockwaves through the market. Even BYD stock took a hit that day. But look where we are now.
BYD just hit a new record high of $120.30. I first recommended the stock at around $52 a share. That’s a gain in excess of 130% in less than a year.
BYD Stock Price to Hit $123 per Share
BYD already owns the pole position in the China EV market, and is gradually looking to do the same on a global scale.
In fact, in Europe, BYD just surpassed Tesla (NASDAQ: TSLA) in EV sales for the first ime. To be sure, this is due to the combination of competitive pricing and a negative sentiment from car buyers who are punishing the company in an effort to punish Elon Musk. Love him or hate him, Musk’s association to Trump has soured a small percentage of EV buyers on Tesla.
I’d also point out that these numbers don’t take into account BYD’s newest entry into the European market, the Dolphin Surf.
The Surf is similar to the Segaull, but not quite as cheap.
Still, the new EV will be priced as low as $22,000, which means it’s clocking in below the cost of nearly any other EV in the European market. And it’s a nice car, too, boasting a 360-degree surround-view camera system, adaptive cruise control, lane departure assist and autonomous emergency braking.
As BYD continues to leverage its significant government support, large cash reserves, and ability to undercut every other carmaker on price, it’s unlikely that any other major car brand in the world will be able to keep up in the race to electrify the global transportation economy. Particularly behind the backdrop of a worldwide economic slowdown that will favor the carmakers that can continue to make a profit with low-cost EVs.
While the markets remain uncertain, I do believe BYD will hit a new high this year of $123 per share.
Jeff
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