BYD (BYDDF) signaled second-quarter earnings nearly tripling on the back of record deliveries of electric vehicles. BYD stock rallied Friday for a fifth straight session. Tesla stock hit a 2023 high intraday.
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The Chinese EV and battery giant, backed by Warren Buffett’s Berkshire Hathaway (BRKB) and an archrival to Tesla (TSLA), expects its net profit for the first half of the year to reach RMB 10.5 billion-RMB 11.7 billion ($1.64 billion). That would be up as much as 225% year over year, CnEVPost.com reported Friday, based on a regulatory filing.
Given Q1 net profit of RMB 4.13 billion, that implies Q2 net profit will reach RMB 6.37 billion-RMB 7.57 billion. The high end of the range would mark an all-time high. It would also be up as much as 171% year over year and up as much as 83% vs. Q1.
In Q2, BYD delivered 700,244 EVs, including hybrid vehicles. That was capped off with a strong June, which saw monthly sales surpass 250,000 units for the first time.
Tesla also posted record Q2 sales. Tesla delivered 466,140 EVs globally last quarter, including 247,217 China-made cars.
Among China EV startups, Li Auto (LI) led Q2 sales by a margin. But Nio (NIO) and XPeng (LI) saw sales improve on the back of new models and price cuts.
Tesla slashed prices in China at the start of the year to stimulate sales. That fueled an EV price war, with rivals like BYD also cutting prices or launching cheaper new models.
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BYD Stock, Nio Stock
In stock market trading Friday, shares of BYD advanced 1.6% to 34.53. BYD stock, which trades over the counter, rose for a fifth consecutive day, gaining 4% for the week. Shares bounced from their 50-day moving average last week and have moved off their 21-day line this week.
BYD stock arguably is still actionable from those key levels. The EV giant also could be forging a new consolidation above a prior cup-with-handle base.
Tesla stock rose 1.3%, hitting a 2023 high at 285.30 intraday but closing at 281.38. Tesla earnings are due on July 19.
The startup EV stocks, including Li Auto, Nio and XPeng, all fell slightly Friday. For the week, Nio stock outperformed startup rivals, climbing 5.5%. Wall Street sees Nio poised for a stronger second half of 2023 on the back of new and more affordable Nio electric vehicles.
BYD Battery News
Sources told Reuters Friday that China’s BYD has submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.
BYD has already made a small inroad selling electric vehicles in that market. Tesla is trying to get the green light for an Indian factory.
An unconfirmed social media post also indicated Friday that BYD it has started trial production of sodium-ion Blade batteries for energy storage systems.
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