BYD Inc Feels Effects of Tesla
The US-listed shares of BYD, an electric-vehicle maker backed by Warren Buffett, have declined 14% since the start of February, underperforming Tesla’s 9% advance, while a gauge of global EV makers fell 9% over the same period.
Traders are growing wary of BYD’s prospects after the firm’s dealers slashed prices of some models to boost sales, which is causing investors to sift through the pile of stocks to determine the likely winners and losers from the price war.
Some analysts believe that Shenzhen-based BYD may hold up relatively well as it has better pricing power and controls most of its supply chain by producing its own chips and batteries. The company also reported 85% year-on-year growth to more than 190,000 units in February, after a record sales year in 2022, and analysts’ forward earnings estimates have risen around 20% since December.
However, the wave of caution that is sweeping the industry following moves by Nio Inc. and XPeng Inc. to follow Tesla’s lead in lowering prices as demand slows is also weighing on the stock. Buffett’s steady offloading of shares that’s now topped the $500 million mark is also contributing to the decline in BYD’s stock price.
BYD stock Price Forecast & Analysis
Stock Target Advisor’s analysis of BYD currently rates the stock as a “Neutral”. This rating is based on the evaluation of 8 positive signals and 8 negative signals related to the stock’s price and performance.
As of the last market close, BYD Co Ltd-H’s stock price was USD 29.00. Over the past week, the stock price has changed by +4.39%, indicating a positive trend in the short term. However, over the past month, the stock price has declined by -10.55%, which is a significant decrease in a relatively short time period.
Over the past year, BYD Co Ltd-H’s stock price has increased by +8.25%. This indicates that the stock has performed reasonably well over the longer term, despite some fluctuations in recent months.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
