BYD Stock (OTC:BYDDF), Trade Ideas

Founded in 1995, BYD is a leading Chinese manufacturer in the design, development, and production of new energy vehicles, or NEVs. In March 2022, the firm discontinued production of internal combustion engine, or ICE, vehicles. Its products primarily target the growing midpriced mass-market segment in China's passenger vehicle market. The company sold about 3 million passenger NEVs in 2023, accounting for 33% of the Chinese passenger NEV market. Besides automobile production, the company is also engaged in handset components and assembly services, as well as the rechargeable battery and photovoltaics business. After more than 25 years of development, the company has established over 30 industrial parks worldwide.

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The company&#39;s strategy includes a budget model based on the Seagull, which sells in China for under $10,000. 

Warren Buffett-Backed BYD Aims To Outperform Tesla, VW, Stellantis As Europe&#39;s Leading BEV Seller: &#39;The Long Term Is To Produce Locally;&#39;

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Tesla (NASDAQ:TSLA) grapples with mounting job cuts in China amid fierce market competition. Recent layoffs, part of a global downsizing effort exceeding 10%, target various departments at the Shanghai plant. With sales dipping and market share shrinking to 7.5% in Q1 2024, Tesla faces a pivotal moment in China&#39;s EV landscape.

Tesla Cuts More Jobs In China As Competition Heats Up

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Buffett is a value investor, who typically expects growth rates and margins to revert to the mean.

Why Does Warren Buffett&#39;s Bet On Apple And BYD Make More Sense Than Berkshire Throwing Money At Tesla? Fund Manager Explains

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'Biden To Quadruple Tariffs On Chinese EVs From 25% To 100%; Administration Is Preparing To Announce Higher Levies On A Range Of Chinese Goods Next Week' - WSJ

Warren Buffett-backed Chinese automaker BYD Co Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) has set its sights on becoming the top battery-electric vehicle (BEV) seller in Europe, aiming to surpass Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>).
What Happened: Michael Shu, the European president of BYD, announced the company&#8217;s ambitious plans at the Future of the Car Summit, the Financial Times <a href="https://www.ft.com/content/1fc295bc-74e1-4c87-8022-663c69f89545">reported</a> on Friday. 
Shu revealed that BYD is preparing for a &#8220;huge investment&#8221; in factories, dealerships, and marketing in Europe. The company&#8217;s strategy includes a budget model based on the Seagull, which sells in China for under $10,000. The European variant of this model is expected to cost less than €20,000 ($21,548).
Despite the ongoing investigation by the European Union into potential subsidies used by Chinese automakers to reduce vehicle prices, Shu assured that BYD plans to manufacture its cars &#8220;in Europe for Europe.&#8221; This move could potentially help the company avoid higher tariffs and logistical challenges associated with importing vehicles to Europe.
"To ship cars from China to Europe is not going to be long term. The long term is to produce locally," he said.
See Also: <a href="https://www.benzinga.com/news/24/05/38722260/tesla-drivers-rejoice-elon-musk-says-fsd-nag-on-steering-wheel-is-finally-fixed-and-rolling-out-in-n?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Drivers Rejoice: Elon Musk Says FSD Nag On Steering Wheel Is Finally Fixed And Rolling Out In Next Update</a>
Why It Matters: Earlier this year, BYD Executive Vice President Stella Li <a href="https://www.benzinga.com/news/24/02/37327343/tesla-a-partner-and-not-competition-says-byd-chinese-firm-not-eyeing-us-market-just-yet">referred to Tesla as a &#8220;partner&#8221; </a>rather than a competitor, stating that there is less than 15% overlap between BYD and Tesla customers. However, BYD&#8217;s latest move indicates a shift in strategy as the company now aims to outperform Tesla and other major automakers in the European market.
Despite a<a href="https://www.benzinga.com/markets/asia/24/04/38028620/tesla-may-be-staring-at-big-q1-sales-miss-but-could-still-reclaim-ev-crown-from-buffett-supported-ch"> 42% drop in overall electric vehicle deliveries</a> in the first quarter of 2024, BYD remains confident in its European strategy. The company&#8217;s market share for battery-electric cars in Western Europe was 1.7% in the first quarter of 2024, according to Schmidt Automotive Research.
BYD, which is backed by Buffett&#8217;s Berkshire Hathaway Inc., <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38697300/why-does-warren-buffetts-bet-on-apple-and-byd-make-more-sense-than-berkshire-throwi">briefly surpassed Tesla last year</a> as the world&#8217;s largest electric vehicle brand. The company is currently constructing a new factory in Hungary and plans to begin scouting locations for a second plant in the upcoming months.
In 2008, Berkshire invested around $230 million in BYD, obtaining 225 million shares and a 20.49% stake in Class H shares. Over time,<a href="https://www.benzinga.com/news/24/02/36904335/warren-buffett-backed-byd-reports-impressive-33-1-yoy-growth-in-january-sales-continues-to-scale-sal" target="_blank" rel="noreferrer noopener"> it has reduced its stake</a> and now holds approximately 87.6 million BYD H Shares, equivalent to a 7.98% stake.
Price Action: On Friday, Tesla&#8217;s shares were trading 0.76% lower at $170.67 while in the OTC, BYDDF was trading at 1.83% higher at $28.95 and BYDDY 1.62% lower at $57.02, according to <a href="https://pro.benzinga.com">Benzinga Pro.</a>
Read Next: <a href="https://www.benzinga.com/general/entertainment/24/05/38683232/mrbeast-is-giving-away-26-tesla-vehicles-for-his-26th-birthday-including-a-cybertruck-heres?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">MrBeast Is Giving Away 26 Tesla Vehicles For His 26th Birthday Including A Cybertruck: Here's How You Can Win One</a>
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Warren Buffett-Backed BYD Aims To Outperform Tesla, VW, Stellantis As Europe's Leading BEV Seller: 'The Long Term Is To Produce Locally;'

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) faces <a href="https://www.benzinga.com/news/24/04/38474900/tesla-to-cut-693-jobs-in-nevada-amid-global-workforce-reduction-government-notice">escalating job cuts</a> in China as it contends with pressure to regain market share in the world's largest auto market.
Additional layoffs have commenced this week, following cuts in mid-April, part of a global initiative to reduce headcount by over 10%, reported <a href="https://www.bloomberg.com/news/articles/2024-05-09/tesla-ramps-up-job-cuts-in-china-as-sales-slowdown-bites?srnd=industries-v2&amp;sref=TBDibEcD">Bloomberg</a>.
The latest round of layoffs affects various departments, including customer service, engineering, production, and logistics at Tesla's Shanghai plant, responsible for over half of the company's global production. Last month&#8217;s layoffs primarily targeted sales representatives.
It remains uncertain how many individuals will be impacted and the implications for Tesla's China operations. 
A slump in global electric vehicle (EV) demand has prompted Tesla&#8217;s largest layoffs to date. However, the impact is notably pronounced in China, where stiff competition from rivals like BYD Company. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) and <a href="https://www.benzinga.com/news/earnings/24/04/38390883/tesla-q1-earnings-highlights-ev-giant-misses-wall-street-estimates-makes-cost-cuts-invests-in-ai-sp">subdued consumer sentiment have dented sales. </a>
Shipments from Tesla&#8217;s Shanghai factory dipped by 18% in April, despite a 33% growth in the overall new-energy vehicle market.
Tesla's market share in China contracted to approximately 7.5% in Q1 2024, down from 10.5% in the corresponding period last year.
Also Read: <a href="https://www.benzinga.com/markets/asia/24/05/38616682/elon-musks-tesla-sues-indian-company-for-trademark-infringement-report">Elon Musk&#8217;s Tesla Sues Indian Company For Trademark Infringement: Report</a>
China Overhaul: In addition to ongoing layoffs, Tesla&#8217;s China operations will see the return of Tom Zhu, who previously spearheaded the carmaker's <a href="https://www.benzinga.com/news/24/05/38662366/heir-apparent-departs-elon-musks-rumored-tesla-successor-leaves-north-america-to-sharpen-focus-on-ch">Asia Pacific endeavors and facilitated its entry into China</a>.
Zhu, who was elevated to senior vice president of automotive in April 2023, oversaw global production, sales, deliveries, service, and the company's factories from Tesla's Austin headquarters.
Meanwhile, Tesla has secured preliminary approval from Chinese authorities to deploy its driver-assistance system in China, promising immediate revenue growth.
The approval, subject to conditions, follows successful negotiations with Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) for mapping and navigation, and <a href="https://www.benzinga.com/markets/asia/24/04/38481213/breaking-tesla-reportedly-teams-up-with-baidu-to-roll-out-fsd-in-china">compliance with data security and privacy protocols</a>.
Displaced employees in China are expected to receive severance equivalent to one month&#8217;s pay for every year of service, plus an additional three months&#8217; salary. 
Globally, a surge in executive departures is noted at Tesla, with significant cuts to the 500-person<a href="https://www.benzinga.com/news/24/05/38541246/tesla-ceo-elon-musk-says-supercharger-network-will-still-grow-but-at-a-slower-pace-for-new-locations"> Supercharger team and the newly formed marketing team. </a>
Tesla stock has gained more than 3% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>).
Price Action: TSLA shares are trading lower by 0.4% at $173.93 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/05/38587826/tesla-interns-face-the-heat-of-musks-budget-squeeze">Tesla Interns Face The Heat Of Musk&#8217;s Budget Squeeze</a>
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Right after&nbsp;Berkshire Hathaway, Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) annual shareholder meeting,&nbsp;Tesla, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO&nbsp;Elon Musk&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38635317/its-an-obvious-move-elon-musk-nudges-warren-buffett-again-to-take-position-in-tesla-heres-why-th" rel="noreferrer noopener">yet again indirectly urged&nbsp;</a><a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38635317/its-an-obvious-move-elon-musk-nudges-warren-buffett-again-to-take-position-in-tesla-heres-why-th" rel="noreferrer noopener">Warren Buffett</a>&nbsp;to invest some of his cash pile in the electric vehicle maker. However, Tesla investor and Future Fund Managing Partner&nbsp;Gary Black&nbsp;doesn&#8217;t&nbsp;see this as&nbsp;a possibility.
What Happened:&nbsp;Black stated, &#8220;Buffett would not buy $TSLA as an investment &#8211; it's not his type of stock,&#8221; in a post on X, formerly known as Twitter.&nbsp;
He explained that Buffett is a value&nbsp;investor,&nbsp;who&nbsp;typically&nbsp;expects growth rates and margins to revert to the mean.&nbsp;Tesla,&nbsp;on the other hand, is considered a growth stock that doesn&#8217;t follow this presumption.
Value investing focuses on stocks that are undervalued relative to their intrinsic value at a given time, while&nbsp;growth stocks are associated with companies that can increase their stock prices, revenue, profits, or cash flow&nbsp;at a faster rate&nbsp;than the market.
Black highlighted that Tesla was trading at 70 times its estimated earnings per share for 2024. &#8220;At 70x FY'24 EPS, TSLA would likely be the most expensive stock in Berkshire's portfolio, so I don't see it,&#8221; he remarked. Another reason for potential pushback could be Buffett&#8217;s preference for businesses that can operate independently from the CEO. &#8220;He [Buffett] likes businesses that run themselves,&#8221; Black added.
See Also:<a target="_blank" href="https://www.benzinga.com/money/best-electric-vehicle-stocks" rel="noreferrer noopener">&nbsp;Best Electric Vehicle Stocks</a>
Why It&#8217;s Important: Regarding Buffett&#8217;s stance on investing in the zero-emission vehicle industry, he expressed skepticism during the shareholder meeting. 
Buffett mentioned that Berkshire didn't possess any special expertise in that field, stating, &#8220;I would certainly not know how to pick the winners in an industry like that — but I'll be delighted if there are some winners — but don't count on us for seeing who the winners will be and don't count on us for predicting when something will happen.&#8221;
What About Apple And BYD?&nbsp;When Black&#8217;s social media followers mentioned the significant increase in Apple shares since Berkshire first acquired a stake in the company in the first quarter of 2016, he pointed out that, at the time of investment, the iPhone maker&#8217;s stock was trading at 11 times its earnings for the running year.
Interestingly, Berkshire has invested in the Chinese EV startup&nbsp;BYD Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>). Black noted that BYD&#8217;s shares currently trade at 18 times the estimated earnings for 2024. When Berkshire initially invested&nbsp;<a target="_blank" href="https://fortune.com/2021/03/02/warren-buffett-investments-berkshire-hathaway-byd/" rel="noreferrer noopener">in BYD in 2008</a>, at the urging of Buffett&#8217;s trusted lieutenant&nbsp;Charlie Munger, the stock was even cheaper, with a P/E ratio of less than 10.
Tesla closed Tuesday&#8217;s session down 3.76% at $177.81 and was down 1.60% in Wednesday&#8217;s pre-market session, according to&nbsp;<a target="_blank" href="https://benzinga.grsm.io/register174" rel="noreferrer noopener">data from Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/news/24/05/38691711/warren-buffett-admits-no-one-knows-how-to-use-berkshires-189b-cash-pile-effectively-just-because-thi">Warren Buffett Admits No One Knows How To Use Berkshire&#8217;s $189B Cash Pile Effectively Just Because &#8216;Things Aren&#8217;t Attractive&#8217; Right Now</a>
This illustration was generated using artificial intelligence via MidJourney.

Why Does Warren Buffett's Bet On Apple And BYD Make More Sense Than Berkshire Throwing Money At Tesla? Fund Manager Explains

In a significant development in the Chinese electric vehicle (EV) market, Nio (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) has teamed up with BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) to procure batteries for a new, competitively-priced EV brand.
What Happened: This partnership marks a major milestone for BYD, which has been striving to expand its revenue streams beyond its own EV sales, Reuters reported on Tuesday. The collaboration also highlights the fierce competition in China&#8217;s EV market, especially in relation to pricing and battery costs, the most significant expense in a new vehicle.
Nio, which initially planned to produce batteries internally, has now shifted its strategy towards cost reduction to offset losses. The company announced on Monday that the new brand would be called &#8220;Onvo&#8221; and is intended to compete with Elon Musk&#8216;s Tesla Model Y.
See Also: <a href="https://www.benzinga.com/general/social-media/24/05/38649736/tesla-semi-with-walmart-branding-spotted-whats-next-for-ev-giants-push-into-semi-trucks?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Semi With Walmart Branding Spotted: What&#8217;s Next For EV Giant&#8217;s Push Into Semi-Trucks?</a>
Currently, Nio sources most of its batteries from industry leader CATL. Under the new agreement, BYD will join CATL in supplying a smaller battery pack for one version of the new Onvo EV. Another Chinese battery maker, CALB, will provide a larger battery pack of 85 kilowatt hours.
Why It Matters: This development comes amidst a major shift in China&#8217;s EV market. In March, Warren Buffett-backed BYD <a href="https://www.benzinga.com/markets/asia/24/03/37776137/chinas-ev-market-charges-forward-warren-buffett-backed-byd-predicts-50-nev-penetration-as-top-player">predicted a significant change</a> in the new energy vehicle (NEV) landscape. This bullish outlook was shared at the China EV 100 Forum in Beijing, where key players outlined their strategies for the rapidly evolving market.
Earlier in the same month, BYD and Xiaomi <a href="https://www.benzinga.com/news/24/03/37616662/teslas-chinese-rivals-are-coming-for-the-throat-byd-xiaomi-sharpen-knives-for-all-out-ev-price-war">initiated a race to make EVs </a>more affordable than their gasoline counterparts. BYD, which surpassed Tesla as the largest EV manufacturer globally in the fourth quarter of 2023, is now focusing on competing with internal combustion engine vehicles rather than other EV makers.
In 2008, Berkshire invested around $230 million in BYD, obtaining 225 million shares and a 20.49% stake in Class H shares. Over time,<a href="https://www.benzinga.com/news/24/02/36904335/warren-buffett-backed-byd-reports-impressive-33-1-yoy-growth-in-january-sales-continues-to-scale-sal" target="_blank" rel="noreferrer noopener">&nbsp;it has reduced its stake</a>&nbsp;and now holds approximately 87.6 million BYD H Shares, equivalent to a 7.98% stake.
Price Action: On Monday, BYDDF shares closed at $29.05&nbsp;and BYDDY shares closed at $57.93, while Nio&#8217;s shares closed at $5.69 on the same day, with a slight decrease to 5.58 USD on May 7, 2024.
Read Next: <a href="https://www.benzinga.com/news/24/05/38606510/us-is-currently-sc-ed-ex-cruise-ceo-calls-for-manufacturing-makeover-to-win-over-chinese-auto-rivals?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;US Is Currently Sc&#x2A;&#x2A;&#x2A;ed:&#8217; Ex-Cruise CEO Calls For Manufacturing Makeover To Win Over Chinese Auto Rivals</a>
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Tesla's Chinese Rival Nio Partners With Warren Buffett-Backed BYD To Launch Budget-Friendly EV Brand

Warren Buffett-backed Chinese EV maker&nbsp;BYD Co&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>),&nbsp;is preparing for the global debut of&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38352429/warren-buffett-backed-byd-names-cybertruck-challenger-shark-with-plug-in-hybrid-system-for-extra-bit" rel="noreferrer noopener">its first pickup truck</a>, the BYD Shark, in Mexico on May 14.
What Happened: As reported by&nbsp;<a target="_blank" href="https://cnevpost.com/2024/05/07/byd-shark-pickup-to-debut-mexico-may-14/" rel="noreferrer noopener">CnEVPost</a>, the BYD Shark is BYD&#8217;s first new model to debut overseas in recent years. The company announced the launch on Weibo.
The decision to launch the BYD Shark in Mexico indicates the company&#8217;s focus on foreign markets, as pickup trucks in China are classified as light vans and face numerous restrictions compared to regular passenger cars.
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/money/best-chinese-stocks" rel="noreferrer noopener">5 Best Chinese Stocks Right Now</a>
With its larger size compared to the&nbsp;Toyota Hilux, the BYD Shark is built on BYD&#8217;s DMO platform, introduced when the company launched the&nbsp;Fang Cheng Bao&nbsp;sub-brand for the off-road market in August 2023.
BYD&#8217;s move mirrors the actions of&nbsp;other&nbsp;local automakers like&nbsp;Geely, which launched its first model, the RD6 electric pickup truck, under the Radar brand in July 2022.
Why It Matters: BYD last month revealed the name of its electric pickup truck, a potential challenger to Tesla&#8217;s Cybertruck, and said it would come equipped with a plug-in hybrid system.&nbsp;
BYD&#8217;s move into the pickup truck market is part of a broader strategy to diversify its product offering.&nbsp;This&nbsp;was evident when&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38422754/warren-buffet-backed-byd-takes-on-luxury-ev-market-with-new-premium-sedan-posing-direct-challenge-fo" rel="noreferrer noopener">BYD unveiled</a>&nbsp;its premium brand&#8217;s first sedan at the Beijing auto show, directly challenging luxury automakers like Mercedes-Benz.&nbsp;
A leading U.S. manufacturing lobby group has issued a stark warning, describing the entry of Chinese EV makers into the American market as a potential &#8220;<a target="_blank" href="https://www.benzinga.com/government/24/02/37313622/chinese-ev-entry-could-trigger-extinction-level-event-for-us-auto-industry-report-warns" rel="noreferrer noopener">extinction-level event</a>&#8221; for the U.S. auto sector. Despite tariffs preventing Chinese automakers from entering U.S. roads thus far, the lobby group has raised alarms about Chinese firms&#8217; investments in plants in nearby Mexico, which could facilitate&nbsp;easier&nbsp;access to the U.S. market.
Read Next: <a href="https://www.benzinga.com/news/24/05/38661398/tesla-semi-scores-another-s-p-500-name-after-pepsi-and-walmart-video-shows-big-box-retailer-using-ev" target="_blank" rel="noreferrer noopener">Tesla Semi Scores Another S&amp;P 500 Name After Pepsi And Walmart?</a>
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Warren Buffett-Backed BYD's Cybertruck Rival To Make Global Debut Right Next Door To US Next Week

In a significant development for the electric vehicle (EV) industry, Chinese-made EVs are poised to challenge the U.S. auto market but face a major hurdle in the form of import tariffs.
What Happened: Despite their global popularity, Chinese EVs have yet to make a significant impact in the U.S. market due to a substantial 27.5% import tariff, NPR <a href="https://www.npr.org/2024/05/06/1248065838/cheap-chinese-evs-us-buy-byd-electric-vehicles">reported</a> on Monday. This barrier is a point of contention for the Biden administration, which is balancing the promotion of affordable EVs against the need to protect American jobs in the auto sector.
The high cost of EVs, with an average price tag of around $54,000, has been a barrier to wider adoption. In response, companies like Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and General Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) are developing more affordable models, and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is expected to launch a lower-priced EV next year.
However, the upcoming release of a Chinese-made EV by Volvo at a sub-$35,000 price point and the proliferation of extremely low-cost Chinese EVs, such as the $10,000 BYD Seagull, are putting pressure on the U.S. market.
See Also: <a href="https://www.benzinga.com/news/24/05/38628243/elon-musk-impressed-by-tesla-cybertrucks-world-war-2-inspired-wrap-cool?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Impressed By Tesla Cybertruck&#8217;s World War 2 Inspired Wrap: &#8216;Cool&#8217;</a>
Amid concerns over national security and protectionism, the Biden administration has maintained, and may potentially increase, the tariffs introduced by the Trump administration. The U.S. Commerce Department is also investigating the potential espionage threat posed by Chinese vehicles&#8217; navigation and communication systems.
Environmental advocates are divided on the issue, with some supporting the push for U.S. automakers to produce greener, cheaper EVs, while others propose alternative sustainable measures.
Why It Matters: The potential entry of Chinese EVs into the U.S. market comes at a time when <a href="https://www.benzinga.com/markets/asia/24/05/38634943/teslas-chinese-rivals-conquer-overseas-markets-at-crazy-growth-rates-as-domestic-sales-sputter-no-su">Chinese automakers are experiencing rapid growth </a>in overseas markets, despite a domestic sales slowdown. In the first quarter of 2024, these manufacturers, including BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), saw a 40% increase in overseas sales, indicating their expanding global footprint.
This trend aligns with <a href="https://www.benzinga.com/news/24/05/38634852/global-gasoline-demand-growth-to-halve-by-2024-amid-rising-ev-demand-in-china-us">projections that global gasoline demand </a>growth will halve by 2024, largely due to the rising demand for EVs in China and the U.S. The shift towards EVs is expected to impact refinery margins in the second half of the year.
Furthermore, <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38506689/teslas-fsd-nod-win-seen-as-move-to-smooth-over-chinese-evs-entry-into-the-us-market-says">Tesla&#8217;s recent progress with its full self-driving (FSD) technology in China</a> has sparked discussions about the competitive landscape of the EV market and the implications for Chinese EVs&#8217; entry into the U.S.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38631004/teslas-china-fsd-goldmine-rivian-receives-much-needed-cash-boost-fisker-lands-in-another-legal-m?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s China FSD Goldmine, Rivian Receives Much-Needed Cash Boost, Fisker Lands In Another Legal Mess And More: Biggest EV Stories Of The Week</a>
Photo via Shutterstock
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Tariffs, National Security Or Climate? Here's Why Chinese EVs Remain Out Of Reach For Americans

China&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/04/38141148/chinas-newest-ev-entrant-ignites-another-fierce-price-war-even-small-fry-feel-the-heat" rel="noreferrer noopener">homegrown EV makers</a>&nbsp;are making waves overseas while facing a slowdown at home.&nbsp;&nbsp;
What Happened:&nbsp;In the first quarter of 2024, local car brands saw a 40% increase in overseas sales compared to the same period last year, reaching a total of 470,000 units exported, as per&nbsp;<a target="_blank" href="https://cnevpost.com/2024/05/06/local-chinese-carmakers-overseas-sales-q1-2024/" rel="noreferrer noopener">CnEVPost</a>, which cited data from the China Passenger Car Association.
Who&#8217;s Leading The Charge?&nbsp;Leading the pack are established Chinese automakers like&nbsp;SAIC,&nbsp;Chery,&nbsp;Great Wall Motor, and&nbsp;BYD Co.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>).&nbsp;
SAIC, the biggest exporter among them, contributed a quarter of all local brand exports with over 126,000 units shipped overseas. Chery, Great Wall Motor, and BYD followed closely behind, collectively accounting for over half of the total exports from local brands.
Europe &amp; Asia Take Notice: The success story extends to the electric vehicle (NEV) market as well. Chinese NEVs are finding eager buyers abroad, evidenced by the $11.1 billion worth of NEVs exported in the first quarter, an 18% year-on-year jump. Europe and Asia are the primary destinations, with over 337,000 Chinese-made cars finding new homes in these regions.
See Also: <a href="https://www.benzinga.com/money/best-chinese-stocks" target="_blank" rel="noreferrer noopener">5 Best Chinese Stocks Right Now</a>
In terms of NEV sales overseas, BYD, SAIC, Geely and Great Wall Motor were the leaders, with Xpeng (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) and Nio (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) witnessing modest success.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>EV Maker</td>
<td>NEV Overseas Sales Q1 2024</td>
</tr>
<tr>
<td>BYD</td>
<td>47,238</td>
</tr>
<tr>
<td>SAIC</td>
<td>31,018</td>
</tr>
<tr>
<td>Geely</td>
<td>13,384</td>
</tr>
<tr>
<td>Xpeng</td>
<td>1,432</td>
</tr>
<tr>
<td>Nio</td>
<td>388</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data from CPAC</figcaption></figure>
Innovation Driving Sales?&nbsp;Facing a slowdown in the domestic market, some Chinese EV manufacturers are&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37578779/tesla-rivals-in-china-are-tempting-buyers-with-in-car-beds-kitchens-and-drones-amid-ev-industry-slow" rel="noreferrer noopener">introducing unconventional features</a>&nbsp;like in-car beds and kitchens, aiming to entice overseas buyers and stand out from the competition.&nbsp;
BYD&#8217;s Premium Strategy:&nbsp;BYD, China&#8217;s top EV maker, is taking&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/04/38480400/why-tesla-rival-byd-charges-up-to-3x-more-for-evs-in-europe-while-china-prices-remain-shockingly-low" rel="noreferrer noopener">a different approach in Europe</a>. Instead of flooding the market with budget-friendly options, BYD is commanding premium prices, a strategy that appears to be paying off with healthy profits.
Chinese EV traders are also reportedly using a unique way <a href="https://www.benzinga.com/markets/asia/24/02/37062412/how-chinese-ev-traders-are-beating-global-barriers-with-a-stealthy-tactic-to-conquer-new-markets" target="_blank" rel="noreferrer noopener">to navigate trade barriers</a> in key markets such as the United States, by capitalizing on a policy that allows used car exports without manufacturer authorization. This loophole lets them register new cars in China and then immediately ship them overseas, technically making them &#8220;used&#8221; and bypasses export restrictions.
Photo via Shutterstock
Read Next: <a href="https://www.benzinga.com/news/24/05/38634852/global-gasoline-demand-growth-to-halve-by-2024-amid-rising-ev-demand-in-china-us" target="_blank" rel="noreferrer noopener">Global Gasoline Demand Growth To Halve By 2024 Amid Rising EV Demand In China, US</a>
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Retail Sales

Tesla's Chinese Rivals Conquer Overseas Markets At Crazy Growth Rates As Domestic Sales Sputter: No Surprise Who's Leading EV Chart

Tesla Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) has reportedly abandoned&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/11/35614677/toyota-up-in-arms-against-teslas-groundbreaking-gigacasting-technique-in-ev-production-report" rel="noreferrer noopener">its pioneering manufacturing process</a>, indicating a shift in strategy for the EV behemoth as it grapples with falling sales and mounting competition.
What Happened: Tesla has stepped back from its ambitious gigacasting plan, Reuters reported, citing two sources familiar with the matter.&nbsp;
The company&#8217;s objective was to streamline manufacturing and cut costs by casting large sections of the car's underbody in one piece.&nbsp;
However, Tesla has now reportedly paused this initiative, choosing to continue with its established method of casting vehicle underbodies in three sections.
This move to delay the potential manufacturing breakthrough is another instance of Tesla cutting short-term expenditure as it adapts to declining sales, shrinking profit margins, and escalating competition from rival EV manufacturers such as China's&nbsp;BYD Co.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>).
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38511618/tesla-researcher-thinks-ev-giants-biggest-challenge-in-q2-comes-from-one-of-its-cas?itm_source=parsely-api" rel="noreferrer noopener">Tesla Researcher Thinks EV Giant&#8217;s &#8216;Biggest Challenge&#8217; In Q2 Comes From One Of Its Cash Cows Due To A Tax Twist</a>
Not A Recent Plan?&nbsp;The gigacasting reversal reportedly took place last fall, before Tesla&#8217;s decision in late February to cease development of an all-new affordable car, often referred to as the Model 2, which would have been the first vehicle it built with one-piece gigacasting.
During the second-quarter earnings call with analysts, Tesla revealed a simpler, faster plan for manufacturing "more affordable" cars after abandoning plans for the Model 2. Instead, Tesla officials stated, it would produce affordable models using an existing platform and production lines.
Reuters&#8217; sources suggest that Tesla has not entirely discarded the small-vehicle platform it had planned for the Model 2. Instead, it will proceed with the development of a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38500447/teslas-robotaxi-plans-potential-threat-or-future-partner-for-uber">self-driving robotaxi</a> on the same platform.
Why It Matters: Tesla&#8217;s gigacasting technique, first used in 2020 for its Model Y SUV, revolutionized the vehicle manufacturing process by casting sizable aluminum body components with casting machines, as opposed to conventional assembly techniques that required welding or stamping of several parts.&nbsp;
This innovation had put Tesla ahead of competitors like&nbsp;Toyota Motor Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), who&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34720319/revolutionizing-the-road-toyota-unveils-new-approach-to-manufacturing" rel="noreferrer noopener">found themselves struggling</a>&nbsp;to keep pace with Tesla&#8217;s production efficiency.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/24/04/38518177/29-year-old-tesla-worker-who-got-fired-says-he-slept-in-parking-lot-showered-at-factory-and-ate-micr?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">29-Year-Old Tesla Worker Who Got Fired Says He Slept In Parking Lot, Showered At Factory And Ate Microwaved Food</a>
<a href="https://commons.wikimedia.org/wiki/File:Tesla_auto_bots.jpg">Photo</a> via Wikimedia Commons
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Rumors

Giga Pause: Elon Musk's Tesla Reportedly Backs Down On Ambitious EV Manufacturing Technique Amid Hardcore Cost-Cutting Drive

Chinese EV giant <a href="https://www.benzinga.com/markets/asia/24/04/38028620/tesla-may-be-staring-at-big-q1-sales-miss-but-could-still-reclaim-ev-crown-from-buffett-supported-ch">BYD Co Ltd</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) will be upgrading software on 16,666 units of its Seagull electric vehicles as the reversing screen may not be displayed in them. 
What Happened: These vehicles were produced between April 7, 2023, and May 31, 2023, and have problems with their camera driver software, which in turn caused the reversing screen display issue, China&#8217;s market regular said on Tuesday. 
As for a solution, the company said that it will deploy an over-the-air software upgrade to fix the issue. 
For vehicles that cannot be fixed via the update, the company said it will contact the relevant customers and upgrade the software. 
Why It Matters: BYD is the <a href="https://www.benzinga.com/markets/penny-stocks/24/04/38048665/byd-nio-li-and-xpeng-report-deliveries-rose-in-march">top-selling EV maker </a>in China. In the first quarter of 2024, the company sold 626,263 of all types of new energy vehicles, marking a jump of 13.44% from a year ago. 
New energy vehicles in China refer to both battery-electric and plug-in hybrid electric vehicles. 
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read More: <a href="https://www.benzinga.com/news/24/04/38514973/rivian-production-at-risk-illinois-plant-hit-by-second-fire-accident-in-a-week">Rivian Production At Risk? Illinois Plant Hit By Second Fire Accident In A Week</a>

Government

Regulations

Top Tesla Rival BYD Recalls Over 16,000 Seagull EVs Over Faulty Reversing Cameras

Cathie Wood&#8217;s Ark Invest was on a chip stock buying spree on Monday, and the purchase assumes importance because it came just ahead of Advanced Micro Devices, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) <a href="https://www.benzinga.com/analyst-ratings/price-target/24/04/38498428/amd-q1-earnings-preview-analysts-bullish-but-warn-of-factors-that-can-derail-the-sem">earnings.</a>
What Happened: Ark, through its ARK Autonomous Technology &amp; Robotics ETF (CBOE: ARKQ), added 2,895 shares of AMD, valued at $463,779. AMD has a 1.83% weighting in the exchange-traded fund, which holds just under 100,000 shares of the chipmaker.
AMD is scheduled to report its first-quarter results on Tuesday after the market close, with analysts, on average, estimating earnings of 61 cents per share on revenue of $5.46 billion, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Ark also bought 2,079 shares of Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), the foundry that supplies chips to Nvidia and Apple. Based on the closing price of the NYSE-listed TSMC ADR, the purchase is worth $287,942.
TSMC recently reported a first-quarter beat, riding on AI chip demand.
ARKQ also added 1,061 shares of Qualcomm, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) valued at $79,521. Qualcomm is scheduled to report its quarterly results Wednesday after the market close.
The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), which tracks the performance of the Philadelphia Semiconductor Index, added 0.76% on Monday. For the year, the ETF has gained about 15%.
See Also: <a href="https://www.benzinga.com/money/best-etfs">Best ETFs To Buy Right Now</a>
BYD Buying Continues: Ark continued to add ADRs of Warren Buffett-backed Chinese electric vehicle startup BYD Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>). On Monday, ARKQ picked up 5,087 ADRs worth $281,567. This comes on top of the <a href="https://www.benzinga.com/markets/equities/24/04/38477354/cathie-woods-ark-invest-hoards-palantir-stock-ahead-of-q1-earnings-adds-more-of-this-buffett-bac">$1.69 million worth of the company&#8217;s ADRs the firm bought last week.</a>
Ark&#8217;s flagship Ark Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) ended Monday&#8217;s session up 2.41% at $45.13, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38509278/cathie-woods-ark-invest-scoops-up-over-4m-worth-of-palantir-meta-platforms-shares">Cathie Wood&#8217;s Ark Invest Scoops Up Over $4M Worth Of Palantir, Meta Platforms Shares</a>

Long Ideas

Specialty ETFs

Trading Ideas

ETFs

ARKK

ARKQ

QCOM

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Cathie Wood's Ark Goes Chip-Stock Shopping Ahead Of AMD Earnings, Adds More Of Warren Buffett-Backed Chinese EV Play

Tesla Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) recent achievement in passing a significant milestone for its full self-driving (FSD) technology in China sparked discussions among <a href="https://www.benzinga.com/quote/TSLA/news">investors and enthusiasts</a>. 
The news, which caused Tesla&#8217;s share price to spike more than 15% on Monday, comes as the electric car maker continues to navigate the competitive Chinese market.
Related: <a href="https://www.benzinga.com/markets/equities/24/04/38485399/tesla-skyrockets-about-10-in-premarket-whats-fueling-the-dramatic-rally">Tesla Skyrockets About 10% In Premarket: What&#8217;s Fueling The Dramatic Rally?</a>
<h1 class="wp-block-heading">Strategic Win For Tesla</h1>
The breakthrough in China raises expectations that Tesla&#8217;s FSD technology will soon be available in the country. China is Tesla&#8217;s largest market for electric vehicles.
Investors see this move as a strategic win for Tesla. Especially since it comes at a time when it is facing stiff competition from local rivals such as BYD Co Ltd (OTCPK:BYDDF) (OTCPK:BYDDY), Nio Inc &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), and Xpeng Inc &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>).
However, some investors remain cautious about the impact of this development on Tesla&#8217;s stock.
<h1 class="wp-block-heading">May Not Be The Catalyst To Drive Further Gains, Says Redditor</h1>
The Redditor known as Puginator <a href="https://www.reddit.com/r/stocks/comments/1cfwypc/tesla_jumps_10_in_premarket_trade_after_passing/">posted on r/stocks</a>, sharing his opinion on the news. He highlighted that while Tesla&#8217;s stock saw a significant jump, this may not be the catalyst to drive further gains. 
Others echoed similar sentiments. Two Redditors pointed out previous announcements by Tesla, such as the unveiling of Tesla 2 and the promise of robotaxis, did not have a significant impact on the stock price.
Despite the skepticism, some believe Tesla&#8217;s move to bring its FSD technology to China could have broader implications.
<h1 class="wp-block-heading">Broader Implications Of Tesla&#8217;s FSD Nod</h1>
Redditor Decent-Photograph391 suggested China&#8217;s decision to allow Tesla&#8217;s FSD could be a strategic move to smooth over Chinese EVs&#8217; entry into the U.S. market. By allowing Tesla&#8217;s FSD, China may be positioning itself favorably in the global EV market, leveraging its ability to make quick decisions and allocate resources effectively. 
<blockquote class="wp-block-quote">&#8220;I have a different take. China is allowing it to smooth over Chinese EV's entry into the US market.
They figure it's no big loss to allow Tesla's &#8216;FSD,&#8217; as it won't hurt the Chinese in their domestic market as few people make buying decisions based on driving assistance. BYDs are selling just fine without investing too much into it.&#8221;
<cite>&#8212;<a href="https://www.reddit.com/r/stocks/comments/1cfwypc/comment/l1s3r3w/?utm_source=share&amp;utm_medium=web3x&amp;utm_name=web3xcss&amp;utm_term=1&amp;utm_content=share_button">Redditor Decent-Photograph391</a></cite></blockquote>
Overall, investors saw Tesla&#8217;s progress with its FSD technology in China as a positive development for the company.
It remains to be seen how this milestone will truly impact Tesla&#8217;s stock and its competitive position in the global EV market.
TSLA Price Action: Tesla stock closed up 15.31% at $194.05 on Monday.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38491219/apple-and-tesla-only-two-companies-able-to-thread-the-needle-in-terms-of-china-us-s">Apple And Tesla &#8216;Only Two Companies Able To Thread The Needle In Terms Of China-US&#8217;, Says Top Analyst After Tim Cook And Elon Musk&#8217;s Recent China Visits</a>
Photo: Beach Media on Shutterstock

Opinion

Tesla's FSD Nod Win Seen As Move To 'Smooth Over Chinese EV's Entry Into The US Market' Says Redditor

A Chinese industrial association has published a list of 76 models of intelligent connected vehicles that meet the country's auto data security requirements, including those from BYD and Tesla.
The list was released after security tests jointly conducted by the China Association of Automobile Manufacturers and the National Computer Network Emergency Response Technical Team/Coordination Center of China. Models from Li Auto, Lotus, Hozon New Energy Automobile, and NIO were also on the list.
In tests starting in November 2023, cars were assessed to see if they met four compliance requirements -- the anonymization of facial and other information from outside the car, the default non-collection of in-car data, the in-car data processing, and the conspicuous notification of personal information processing.
The tests were carried out according to related laws and standards, and the carmakers submitted their models on a voluntary basis, according to the association.
The association said the test aims to help regulate auto data processing, protect the rights of car users, and build a sound environment for auto data security and the industry.

"China Publishes List Of Intelligent Cars Compliant With Data Security Requirements, Tesla Included" - Xinhua

While fears of a Chinese EV invasion grip the United States, a surprising trend has emerged: China&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37886073/warren-buffett-backed-byd-forays-into-yet-another-european-country-with-best-selling-atto-3-seal-ev" rel="noreferrer noopener">top electric vehicle maker</a>,&nbsp;BYD Co.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>), isn&#8217;t flooding Europe with bargain-basement cars.&nbsp;Instead,&nbsp;it&#8217;s charging significantly higher prices compared to&nbsp;their home market, raking in hefty profits.
BYD Looks At High Prices, High Profits:&nbsp;A Reuters investigation reveals BYD is marking up export prices by massive margins – sometimes nearly triple – for popular models like the Atto 3 and Dolphin compared to China. In Germany, for instance, the Atto starts at a whopping $42,789, compared to a much friendlier $19,283 price tag in China.
So, Why The Disparity? It all boils down to profits. BYD faces fierce competition in China&#8217;s cutthroat EV market, forcing them to keep prices low. By jacking up export prices, they capture significantly higher margins they can&#8217;t achieve domestically.
See Also: <a href="https://www.benzinga.com/money/best-chinese-stocks" target="_blank" rel="noreferrer noopener">5 Best Chinese Stocks Right Now</a>
Cost Advantages Fueling Profits:&nbsp;BYD enjoys several cost advantages over foreign competitors. They control most of their production chain, from raw materials to batteries, leading to significant cost savings. Additionally, China heavily subsidizes EV production, further lowering costs. This edge allows BYD to offer competitive prices in Europe, even after substantial markups.
Tesla&#8217;s More Modest Markup:&nbsp;Interestingly,&nbsp;Tesla, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) with a higher cost base than BYD, only marks up its Chinese-made Model 3 by 37% in Germany.&nbsp;This&nbsp;suggests BYD&#8217;s export markups are strategic, aiming to maximize profits rather than undercut competition.
Building Brand, Not a Price War: Experts believe BYD&#8217;s strategy goes beyond immediate profits and is aiming to shed the &#8220;cheap Chinese product&#8221; label and build a strong brand with premium offerings. Its focus on maintaining strong resale values aligns with this strategy.
The European Challenge:&nbsp;&nbsp;However, BYD&#8217;s European ambitions face potential roadblocks. While some U.S. and European automakers fear a Chinese EV price war, BYD&#8217;s current strategy suggests otherwise.&nbsp;
But&nbsp;<a target="_blank" href="https://www.benzinga.com/24/04/38223247/the-expansion-of-chinas-ev-makers-could-threaten-the-legacy-of-european-automakers" rel="noreferrer noopener">Europe&#8217;s EV market</a>&nbsp;is experiencing a slowdown compared to China and the US, with sales dropping 9% in March 2024 compared to the previous year.&nbsp;This&nbsp;could limit BYD&#8217;s immediate sales potential.
Furthermore, trade tensions simmer between Europe and China.&nbsp;Currently, Chinese EVs face a 10% tariff in Europe, while European carmakers are subject to a 15% tariff when exporting to China. This disparity has&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37744641/mercedes-benz-ceo-calls-for-lower-eu-tariffs-on-chinese-evs-amid-commission-probe-let-competition-pl" rel="noreferrer noopener">some European automakers</a>&nbsp;calling for a &#8220;level playing field.&#8221; The European Commission, meanwhile, is even&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/asia/24/01/36612885/chinese-ev-makers-byd-geely-under-eu-scrutiny-report" rel="noreferrer noopener">investigating potential punitive tariffs</a>&nbsp;on Chinese EVs, citing concerns about unfair state subsidies.
China&#8217;s EV Expansion Continues: Despite these challenges, Chinese EV makers continue their aggressive expansion. XPeng and BYD are just the tip of the spearhead entering Europe, and other automakers might follow suit. This raises a crucial question for established European carmakers: can they adapt and compete with the surging Chinese EV industry, or will they need to <a href="https://www.benzinga.com/markets/asia/23/07/33411425/european-automakers-forge-power-packed-partnerships-in-china-to-conquer-booming-ev-market">partner with Chinese companies</a> to access technology and navigate the changing electric car landscape?
The Takeaway: For now, BYD prioritizes maximizing profits and building brand image in Europe, leaving aggressive price competition for another day. Their focus? Maximum profit, not market domination – at least for now. However, the European market&#8217;s slowdown and potential trade disputes could complicate their long-term strategy. The race for dominance in the global EV market is far from over, and BYD&#8217;s next moves will be closely watched.
Read Next: <a href="https://www.benzinga.com/news/24/04/38480035/unlocking-teslas-hidden-treasures-7-lesser-known-features-that-could-revolutionize-your-driving-expe" target="_blank" rel="noreferrer noopener">Unlocking Tesla&#8217;s Hidden Treasures: 7 Lesser-Known Features That Could Revolutionize Your Driving Experience</a>
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Why Tesla Rival BYD Charges Up To 3x More For EVs In Europe While China Prices Remain Shockingly Low

<a href="https://finance.yahoo.com/news/china-association-says-tesla-byd-141025655.html" title="https://finance.yahoo.com/news/china-association-says-tesla-byd-141025655.html">https://finance.yahoo.com/news/china-association-says-tesla-byd-141025655.html</a>

China Association of Automobile Manufacturers Published List Of 76 Smart Vehicle Models By Tesla, BYD, Li Auto, Nio, Others Compliant With National Data Security Standards

On Friday, Cathie Wood-led<a href="https://www.benzinga.com/topic/ark-invest"> Ark Invest</a> did a flurry of trades involving some of its key portfolio stocks, notably adding a big chunk of shares of AI-levered Palantir Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>).
AI Pickings: Ark, through its ARK Autonomous Technology &amp; Robotics ETF (CBOE: ARKQ), bought 100,344 shares of Palantir, valued at $2.26 billion. This was in addition to the 45,229 shares, worth $981,923, it acquired on Thursday.
Palantir is scheduled to report its first-quarter results on May 5. Analysts, on average, expect the company to report earnings per share of 8 cents per share on revenue of $625.33 million, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>This represents an increase from fourth-quarter numbers of 5 cents per share and $525.19 million, respectively.
Ark also accumulated Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares in two sessions following the social media giant&#8217;s quarterly earnings announcement.
The Meta stock ended 10.56% lower on Thursday, reacting to its soft second-quarter revenue guidance and commentary regarding intensive investment in AI. Ark, via its Ark Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>), ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) and ARK Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>) added 27,961 Meta shares on Thursday worth $12.34 million.
Ark went on a Meta buying spree yet again on Friday despite the stock recovering and closing 0.43% higher. The firm bought 13,494 Meta shares valued at $5.98 million.
See Also: <a href="https://www.benzinga.com/money/best-etfs">Best ETFs To Buy Right Now</a>
Bargain Hunting In Roku: Streaming equipment maker Roku, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) shares fell 10.28% on Friday despite its quarterly beat. Investors apparently did not take kindly to the management hinting at difficult comparisons in the coming quarters.
Undeterred by the sell-off, Ark added a whopping 715,644 Roku shares, valued at $40.33 million, on Friday. 
An EV Buy: Ark, which supported Tesla amid its stock slump prior to its earnings, shifted allegiance to another electric-vehicle maker this week.
Through ARKQ, Ark bought 2,800 shares of BYD Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) worth $146,132 on Thursday. It followed up with the purchase of another 28,434 shares, valued at $1.54 million, on Friday.
Billionaire investor Warren Buffett&#8217;s Berkshire has a stake in BYD, which wrested the global battery EV crown from Tesla in the fourth quarter of 2023 but has since <a href="https://www.benzinga.com/markets/equities/24/04/38047077/tesla-stock-dives-as-q1-deliveries-disappoint-but-ev-giant-reclaims-top-spot-from-chinese-rival">ceded it back to the U.S. EV giant.</a> BYD now accounts for about 1% of ARKQ&#8217;s portfolio by weighting.
Ark&#8217;s flagship exchange-traded fund, the ARKK, closed Friday&#8217;s session up 1.05% at $44.07, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38405187/elon-musk-echoes-cathie-wood-wants-tesla-to-be-seen-as-an-ai-or-robotics-company-if-you-value-te">Elon Musk Echoes Cathie Wood, Wants Tesla To Be Seen As An AI Or Robotics Company: &#8216;If You Value Tesla As Just An Auto Company…Wrong Framework&#8217;</a>
Photo: Shutterstock

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Cathie Wood's Ark Invest Hoards Palantir Stock Ahead Of Q1 Earnings, Adds More Of This Buffett-Backed EV Bet, Buys Meta, Roku Earnings Dip

Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) led a recovery in electric vehicle stocks in the week that ended on April 26, as <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38398667/tesla-bulls-praise-musks-q1-earnings-call-see-ev-giant-on-collision-course-with-ube">the company delivered what its investors wanted to hear</a> in its earnings release and on its earnings call. Firmer broader market sentiment also helped to some extent.
Here are the key events that happened in the EV space during the week:
Tesla Affirms Product Plans And More: After a string of price cuts across its markets, Tesla chose to make peace with investors by reaffirming that it would roll out a low-end model. Analysts have emphasized the importance of an affordable EV in boosting Tesla&#8217;s sales from their current slump. The company announced an accelerated start of production for the new model, moving it up from the previously stated &#8220;second-half of 2025.&#8221; It will incorporate elements of both the next-generation platform and its current platforms, and will be manufactured using existing production lines.
Skeptics, however, suggested that the company&#8217;s announcement implied the absence of a sub-$30K car in the pipeline, instead indicating a plan to reduce features in its current lineup.
Tesla reported a double-miss, underperforming relative to both first-quarter earnings and revenue expectations, with its free-cash-flow sinking into negative territory. This prompted even bullish analysts to take down their estimates for the company.
Tesla confirmed on its earnings call that the Tesla Semi, which is now being sold exclusively to PepsiCo., will be manufactured from a new factory in Reno and first deliveries to external customers will begin in early 2026.
Tesla bull Ron Baron said in a CNBC interview this week that, while the stock could have bottomed now, &#8220;it&#8217;s going to go up huge.&#8221;
Another key Tesla executive confirmed this week that he would leaving. Tesla&#8217;s Investor Relations Head Martin Viecha said at the end of the earnings call that he communicated the decision to CEO Elon Musk and CFO Vaibhav Taneja a month ago. 
&#8220;I'll be hanging around for another couple of months or so. So, feel free to reach out at any time. But after the seven-year sprint, I'm going to be taking a break and spending some good quality time with my family,&#8221; he said.
See Also: <a href="https://www.benzinga.com/money/best-electric-vehicle-stocks">Best Electric Vehicle Stocks</a>
Fisker In Talks For Potential Sale: Beleaguered EV maker Fisker, Inc.&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FSRN#OTC">FSRN</a>) CEO Henrik Fisker told employees in an all-hands meeting that the company was in talks with four automakers for a potential sale, Business Insider <a href="https://www.businessinsider.in/thelife/news/fisker-tells-employees-that-4-automakers-are-in-talks-to-buy-the-struggling-startup/articleshow/109602666.cms">reported</a>.
&#8220;We still have some time to get other offers on Fisker. We do have four car companies that have signed NDAs. However, they obviously need time to get to some diligence,&#8221; he reportedly said. 
The report comes close on the heels of the company filing its 10-K report in which it said it &#8220;believes that its available liquidity will not be sufficient to meet its current obligations for a period of at least twelve months from the date of the filing of this Annual Report on Form 10-K. Accordingly, the Company has concluded there is substantial doubt about its ability to continue as a going concern.&#8221;
BYD&#8217;s Pickup Named &#8220;Shark&#8221;: Chinese EV startup and Warren Buffett-backed BYD Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) announced on its Weibo account that its first energy pickup truck will officially be called the BYD Shark and will be built on the DMO super hybrid off-road platform, <a href="https://cnevpost.com/2024/04/22/byd-names-pickup-shark/">reported</a> CnEVPost.
The vehicle will be sold globally, the company said. The report also stated that the pickup will be positioned as a mid-size model, surpassing the Toyota Hilux in size.
VinFast Founder&#8217;s Financing Commitment: Vietnamese EV maker VinFast Auto Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFS#NASDAQ">VFS</a>), which entered the U.S. market in 2022, may receive support from its founder as it contends with fierce competition and a slowing industry. Bloomberg reported that Vietnamese billionaire Pham Nhat Vuong <a href="https://www.benzinga.com/markets/equities/24/04/38422694/emerging-tesla-challenger-to-receive-another-1b-from-vietnamese-billionaire-i-will-not-give-up-o">pledged to invest at least another $1 billion of his personal wealth into VinFast</a> at the company&#8217;s shareholders meeting.
Rivian Doing A Tesla? After Tesla announced flat $2,000 price reductions for its Model S,X and Y EVs as part of its Earth Day celebration, Rivian said it would offer <a href="https://www.benzinga.com/markets/equities/24/04/38380242/rivians-earth-day-offer-trade-in-your-gas-powered-car-and-get-up-to-5k-off-on-r1-ev">a discount of up to $5,000 on qualifying new R1 models </a>when customers trade in select gas-powered vehicles. Additionally, buyers would become eligible for a year of charging on the Rivian Adventure Network at no additional cost.
The discount, ranging from $1,000 to $5,000, is available to customers in the U.S. and Canada for deliveries taken between April 22 and June 30.
The KraneShares Electric Vehicles and Future Mobility&nbsp;Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>) ended Friday&#8217;s session up 2.30% at $21.32, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a> For the week, the ETF gained 1.33%.
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="http://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38453144/teslas-robotaxi-plan-hasnt-excited-investors-but-fund-manager-gary-black-says-this-">Tesla&#8217;s Robotaxi Plan Hasn&#8217;t Excited Investors, But Fund Manager Gary Black Says This Is What Matters More: &#8216;No Other Way To Interpret This&#8230;&#8217;</a>
EV Stock Performances For Week:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Performances (+/-)</td>
</tr>
<tr>
<td>Tesla</td>
<td>+14.44%</td>
</tr>
<tr>
<td>Nio, Inc.(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>)</td>
<td>+18.16%</td>
</tr>
<tr>
<td>XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>)</td>
<td>+13.13%</td>
</tr>
<tr>
<td>Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>)</td>
<td>-5.08%</td>
</tr>
<tr>
<td>Fisker</td>
<td>+23.04%</td>
</tr>
<tr>
<td>Workhorse Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WKHS#NASDAQ">WKHS</a>)</td>
<td>-2.67%</td>
</tr>
<tr>
<td>Hyzon Motors, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HYZN#NASDAQ">HYZN</a>)</td>
<td>-3.52%</td>
</tr>
<tr>
<td>Canoo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOEV#NASDAQ">GOEV</a>)</td>
<td>-2.81%</td>
</tr>
<tr>
<td>Rivian </td>
<td>+4.75%</td>
</tr>
<tr>
<td>Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>)</td>
<td>+0.41%</td>
</tr>
<tr>
<td>Faraday Future Intelligent Electric, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIE#NASDAQ">FFIE</a>)</td>
<td>-19.93%</td>
</tr>
<tr>
<td>Nikola Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NKLA#NASDAQ">NKLA</a>)</td>
<td>-0.08%</td>
</tr>
<tr>
<td>VinFast </td>
<td>+3.18%</td>
</tr>
</tbody>
</table>
</figure>
Photo: Shutterstock

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Tesla Calms Investors After Dismal Q1, Fisker Buyout Buzz, BYD Enters Pickup Game And More: Biggest EV Stories Of The Week

The Beijing auto show is reportedly serving as the platform for the biggest automakers around the globe to showcase their EVs.
What Happened: The Beijing International Automotive Exhibition, which commenced on Thursday, has brought to the fore the growing influence of EVs in China, Reuters reported. The event is set to run through early May.
The show has seen a surge in the number of new energy vehicles (NEVs) on display, with automakers unveiling a total of 278 NEVs, seven more than last year&#8217;s event in Shanghai, the report noted.
Chinese EV manufacturers, including BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) and newcomer Xiaomi, are reportedly the center of attention at the show. Xiaomi CEO Lei Jun announced that the company had received over 75,000 orders for its SU7 sedan, with buyers including owners of luxury cars from the likes of BMW and Audi.
While Chinese EV giant BYD promoted its premium brand Yangwang at the show, its U.S. counterpart Tesla chose not to attend, possibly because the last time it attended <a href="https://www.benzinga.com/news/21/04/20720261/tesla-gives-in-to-chinese-state-run-media-pressure-apologizes-to-aggrieved-customer">an unhappy customer protested against it</a> by climbing atop a display vehicle. The customer then alleged that her car ran into an accident due to brake failure and demanded a refund from the company. 
Other foreign automakers, such as Nissan Motor and Mazda Motor from Japan, peddled plans to invest more in local production and research, Reuters said. 
Why It Matters: The Beijing auto show&#8217;s emphasis on EVs underscores the rapid transformation of the Chinese automotive industry. With NEVs <a href="https://www.benzinga.com/markets/asia/24/03/37776137/chinas-ev-market-charges-forward-warren-buffett-backed-byd-predicts-50-nev-penetration-as-top-player">accounting for over 50% of cars sold in China</a>, the world&#8217;s largest auto market is rapidly shifting towards electric mobility.
This shift is also reflected in the strategies of foreign automakers, with companies like General Motors leaving traditional engine vehicles out of their show line-up for the first time, Reuters noted. 
In 2008, Berkshire invested around $230 million in BYD, obtaining 225 million shares and a 20.49% stake in Class H shares. Over time,<a href="https://www.benzinga.com/news/24/02/36904335/warren-buffett-backed-byd-reports-impressive-33-1-yoy-growth-in-january-sales-continues-to-scale-sal" target="_blank" rel="noreferrer noopener"> it has reduced its stake</a> and now holds approximately 87.6 million BYD H Shares, equivalent to a 7.98% stake.
Price Action: On Wednesday, BYD's stock BYDDF closed at $25.65, up by 2.05% while its ADR BYDDY closed at $51.21, up by 1.2% on the same day.
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/mobility" rel="noreferrer noopener">following this link</a>.
Read More:&nbsp;<a href="https://www.benzinga.com/news/24/04/38423295/ford-cfo-says-ev-price-cuts-bringing-down-revenue-faster-than-company-can-cut-costs-if-the-pricing-s">Ford CFO Says EV Price Cuts Bringing Down Revenue Faster Than Company Can Cut Costs; ‘If The Pricing Stabilizes…'</a>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image Via Shutterstock

Topics

Warren Buffett-Backed BYD, Xiaomi And Other Local Chinese Automakers Shine At Beijing's Largest Auto Show: Report

Chinese EV giant, BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), backed by Warren Buffett‘s Berkshire Hathaway, is set to make a bold move in the luxury EV market with the unveiling of its premium brand&#8217;s first sedan at the Beijing auto show, posing a direct challenge to luxury automakers such as Mercedes-Benz.
What Happened: The Denza Z9GT, BYD&#8217;s new sedan, is the fruit of founder Wang Chuanfu&#8217;s persistence with the brand, Reuters reported on Thursday. This development follows Mercedes-Benz reducing its stake in their joint premium EV venture from 50% to 10%.
The Denza Z9GT will join Denza&#8217;s N7 and N8 SUVs and D9 multipurpose vehicles, all of which have seen increasing sales, contributing to BYD&#8217;s dominance in the EV market.
&#8220;In the past, traditional luxury brands were defined by their logos. Today, luxury for new energy brands are defined by technology,&#8221; said Denza general manager Zhao Changjiang.
However, the luxury vehicle will enter a saturated domestic market amid a price war. Overseas, governments are scrutinizing Chinese EVs, blaming Chinese overcapacity for market flooding.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38350014/elon-musk-reacts-to-teslas-pricing-debate-only-a-fool-thinks?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts To Tesla&#8217;s Pricing Debate: &#8216;Only A Fool Thinks ….&#8217;</a>
BYD&#8217;s success is crucial to its goal of competing with global leaders like Toyota and Volkswagen and shedding its image as a low-cost automaker.
The luxury push is also necessary to increase profitability as the price war squeezes the margins of mainstream models. Denza&#8217;s D9 has become the group&#8217;s most profitable model with annual sales of 119,000 units.
Why It Matters: Earlier this year, BYD <a href="https://www.benzinga.com/markets/asia/24/03/37776137/chinas-ev-market-charges-forward-warren-buffett-backed-byd-predicts-50-nev-penetration-as-top-player">predicted a significant shift</a> in the new energy vehicle (NEV) landscape. The company has been focusing on <a href="https://www.benzinga.com/news/24/03/37616662/teslas-chinese-rivals-are-coming-for-the-throat-byd-xiaomi-sharpen-knives-for-all-out-ev-price-war">making EVs more affordable</a> than their gasoline counterparts. 
Recently, <a href="https://www.benzinga.com/markets/asia/24/02/37305779/teslas-china-rival-byd-raises-luxury-game-with-233k-ev-supercar-to-rival-ferrari-and-lamborghini">BYD unveiled its most expensive vehicle to date</a>, a fully electric supercar valued at $233,450, challenging traditional supercar manufacturers like Ferrari NV and Lamborghini. The company also announced its <a href="https://www.benzinga.com/news/24/04/38352429/warren-buffett-backed-byd-names-cybertruck-challenger-shark-with-plug-in-hybrid-system-for-extra-bit">first electric pickup truck</a>, the BYD Shark.
In 2008, Berkshire invested around $230 million in BYD, obtaining 225 million shares and a 20.49% stake in Class H shares. Over time,<a href="https://www.benzinga.com/news/24/02/36904335/warren-buffett-backed-byd-reports-impressive-33-1-yoy-growth-in-january-sales-continues-to-scale-sal"> it has reduced its stake</a> and now holds approximately 87.6 million BYD H Shares, equivalent to a 7.98% stake.
Price Action: On Wednesday, BYD&#8217;s stock BYDDF closed at $25.65, up by 2.05% while its ADR BYDDY closed at $51.21, up by 1.2% on the same day.
Read Next: <a href="https://www.benzinga.com/general/education/24/04/38388530/heres-how-much-warren-buffett-could-have-made-investing-in-tesla?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Here&#8217;s How Much Warren Buffett Could Have Made Investing In Tesla</a>
Photo via Shutterstock
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Warren Buffett-Backed BYD Takes On Luxury EV Market With New Premium Sedan, Posing Direct Challenge For Mercedes-Benz

Shenzhen-based EV giant BYD Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) has revealed that its <a href="https://www.benzinga.com/markets/asia/24/04/38086696/teslas-top-rival-from-china-eyes-launching-cybertruck-challenger-but-heres-why-a-face-off-seems-unli">upcoming electric pickup truck </a>will be called BYD Shark. 
The Shark is due to be launched this year, just months after rival Tesla started to deliver its own version of an <a href="https://www.benzinga.com/government/24/04/38331377/tesla-recalls-over-3-800-cybertrucks-citing-unintended-acceleration-risk">electric pickup called the Cybertruck. </a>
What Happened: BYD has not made electric pickup trucks to date and the Shark will be its first. The company announced the name in a post on Weibo without revealing prices. The truck, it said, will be equipped with a plug-in hybrid system. 
Earlier this month, it was reported that the truck will be launched this year with dimensions exceeding the Toyota Hilux and focussed on the global market. 
Why It Matters: Warren Buffett-backed BYD took over Tesla as the world's biggest EV seller by volume in the last quarter of 2023, only to&nbsp;<a href="https://www.benzinga.com/news/24/04/38068997/elon-musk-dwells-on-wokeness-geopolitics-population-crisis-but-mostly-stays-silent-on-teslas-gloomy" target="_blank" rel="noreferrer noopener">return the crown in the last quarter.</a>
Tesla started delivering its Cybertruck in November. The vehicle is sold only in the U.S., a market where BYD is yet to make inroads.
In January, Tesla CEO Elon Musk <a href="https://www.benzinga.com/news/24/01/36626369/tesla-ceo-elon-musk-tempers-down-expectations-of-cybertruck-rollout-in-china-could-ship-some-prototy" target="_blank" rel="noreferrer noopener">dampened expectations for Cybertruck sales in China </a>saying that it would be "very difficult" to get the stainless steel vehicle road legal in the Asian country. 
BYD, meanwhile, has not announced any intentions to play in the U.S. as of yet, thinning chances of direct competition between the two trucks in the same markets. 
Furthermore, the Cybertruck is a battery-electric vehicle unlike the Shark, placing them in different fuel categories. 
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read More: <a href="https://www.benzinga.com/news/24/04/38350966/tesla-ends-referral-benefits-this-month-musk-teases-new-program-in-few-months-what-happens-to-curren">Tesla Ends Referral Benefits This Month: Musk Teases New Program in Few Months — What Happens To Current Credits?</a>
Photo courtesy: BYD

Management

Warren Buffett-Backed BYD Names Cybertruck Challenger 'Shark' — With Plug-In Hybrid System For Extra Bite

EV Company News For The Month Of April 2024

BYD May Be Beating Tesla In China, But It's Not Yet A Buy

On the surface, it should have been good news for Chinese electric car maker Nio (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), especially as it worked to produce a deal to improve i...

New Battery Deal Can't Save Nio (NYSE:NIO) From Plunge

New Battery Deal Can't Save Nio (NYSE:NIO) from Plunging

New tariffs on Chinese EVs, other sectors expected next week - report

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Electric vehicle sales are expected to <a href="https://insideclimatenews.org/news/07052024/ev-sales-oil-demand/">hit an all-time high this year</a>. In fact, according to <a href="https://insideclimatenews.org/news/07052024/ev-sales-oil-demand/">Inside Climate News</a>, EV adoption is accelerating quicker than expected. Government subsidies and mandates in the U.S., China and Europe are already helping. All of which could fuel further upside for undervalued <a href="https://investorplace.com/industries/consumer-discretionary/automotive/electric-vehicles/">EV stocks</a>.



China, for example, already hit its 2025 targets earlier than expected. Around 37% of all new cars sold in that country were electric, according to analysts at Raymond James. This year, that number could climb to 45%, <a href="https://insideclimatenews.org/news/07052024/ev-sales-oil-demand/">according to the International Energy Agency</a>.



&ldquo;Falling battery costs, increased policy support and shifting consumer attitudes could mean that electric vehicles will account for more than 60% of new vehicle sales globally by 2030,&rdquo; added the Rocky Mountain Institute (RMI).



Other key catalysts include the eventual and hopeful buildout of electric vehicle charging infrastructure and lower interest rates from the Federal Reserve. Plus, with a good deal of fear now priced into some of the most undervalued EV stocks, it&rsquo;s time to buy.



<h2>Albemarle (ALB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/05/alb1600a-300x169.jpg" alt="Albemarle (ALB) logo on a mobile phone screen"><div>Source: IgorGolovniov/Shutterstock.com</div></div>After dropping to triple-bottom support dating back to early February, Albemarle (NYSE:<a href="https://investorplace.com/stock-quotes/alb-stock-quote/">ALB</a>) is slowly climbing back. Last trading at $130.05, I&rsquo;d like to see it retest $142 near term.&nbsp;



Helping, ALB also just declared a <a href="https://www.prnewswire.com/news-releases/albemarle-announces-quarterly-dividend-302138815.html#:~:text=CHARLOTTE%2C%20N.C.%2C%20May%207%2C,dividend%20of%20%240.40%20per%20share.">40-cent dividend</a>, which is payable on July 1 to shareholders of record as of June 14.



Even better, lithium prices are showing signs of bottoming out. As I noted on May 2, &ldquo;Analysts at&nbsp;<a href="https://www.fastmarkets.com/insights/us-lithium-demand-to-grow-fastmarkets-provide-regional-price-transparency/#:~:text=Fastmarkets%20forecasts%20a%20significant%20growth,for%20the%20US%20and%20Europe.">Fastmarkets say demand for lithium in the U.S.</a>&nbsp;could grow by 487% to 412,000 tonnes by the time 2030 rolls around. Should that happen, a shortage of supply coupled with explosive demand will lead to another massive spike in lithium.&rdquo;



While earnings were nothing to write home about, that&rsquo;s to be expected when lithium prices collapse 80% on oversupply issues.&nbsp;



In its most recent quarter, ALB posted earnings per share of 26 cents, which beat by three cents. Revenue of $1.36 billion, while down 47.3% year over year was in-line with estimates. If lithium prices are truly bottoming out, ALB earnings should improve along with it.



<h2>Nio (NIO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/nio_9_1600-300x169.png" alt="NIO ES6 electric SUV semi-autonomous car on display near Chinese automobile manufacturer NIO software development office in Silicon Valley. Chinese EV companies like NIO are in the news."><div>Source: Michael Vi / Shutterstock.com</div></div>Even Nio (NYSE:<a href="https://investorplace.com/stock-quotes/nio-stock-quote/">NIO</a>) is showing big signs of life again thanks to Chinese subsidies. It&rsquo;s also another one of the most undervalued EV stocks to consider.



Since bottoming out at $3.61 on April 22, it hit a recent high of $6. Now at $5.22, it&rsquo;s still a strong buy opportunity, as sales accelerate. For example, in April, the company saw <a href="https://ir.nio.com/news-releases/news-release-details/nio-inc-provides-april-2024-delivery-update">134.6% year-over-year delivery growth</a>. Year to date, Nio has now delivered 45,673 vehicles, a 21.2% jump year over year, as well.



It also launched its newest 2024 ET7, a premium smart electric sedan. Plus, Nio says it&rsquo;s on track to make two new models for the European EV market. <a href="https://www.reuters.com/business/autos-transportation/nio-track-unveil-its-first-mass-market-car-may-executive-says-2024-05-06/">As noted by Reuters</a>, &ldquo;The Chinese EV company is on track to unveil a new mass-market brand by the end of May and a second smaller EV under $30K for the European market by 2025.&rdquo;



Helping. China said it has plans to provide auto owners with incentives to buy EVs, <a href="https://www.morningstar.com/news/marketwatch/20240426311/nios-stock-jumps-after-report-of-chinas-plan-to-boost-ev-sales">as noted by MarketWatch.com</a>. &ldquo;China plans to pay car owners up to 10,000 yuan, or nearly $1,400 at current exchange rates, if they replace their cars with electric or hybrid vehicles through the end of this year, according to a report in The Wall Street Journal.&rdquo;



<h2>Global X Lithium ETF (LIT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/05/lithium1600d-300x169.jpg" alt="Graphic of Lithium scientific symbol (Li) in the shape of a big white gear with construction equipment and mountain around it. favorite Lithium stocks"><div>Source: GrAl / Shutterstock.com</div></div>We can also look at exchange-traded funds (ETF) like the Global X Lithium ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/lit-stock-quote/">LIT</a>).



While it has run into strong overhead resistance at around $47.25, I&rsquo;d like to see the ETF retest $52.50 near term. In fact, that could easily happen if EV sales gain momentum, and if lithium prices have finally bottomed out.



With an expense ratio of 0.75%, the ETF invests in the complete lithium cycle. That includes mining and refining the metal through battery production. Some of its 40 holdings include Albemarle, Pilbara Minerals (OTCMKTS:<a href="https://investorplace.com/stock-quotes/pilbf-stock-quote/">PILBF</a>), Tesla (NASDAQ:<a href="https://investorplace.com/stock-quotes/tsla-stock-quote/">TSLA</a>), BYD Co. (OTCMKTS:<a href="https://investorplace.com/stock-quotes/byddf-stock-quote/">BYDDF</a>), Arcadium Lithium (NYSE:<a href="https://investorplace.com/stock-quotes/altm-stock-quote/">ALTM</a>), and Pansonic (OTCMKTS:<a href="https://investorplace.com/stock-quotes/pcrhy-stock-quote/">PCRHY</a>).



We also have to consider that&nbsp;should we see a stronger green energy boom and a global recovery in electric vehicle sales, lithium prices should explode even higher.&nbsp;Plus, as noted by the United Nations Conference on Trade and Development, lithium demand is <a href="https://thehill.com/business/4619107-demand-for-critical-minerals-drives-massive-changes-in-global-economy/#:~:text=Demand%20for%20lithium%2C%20nickel%2C%20cobalt,of%20nearly%201%2C400%20metric%20tons.">&ldquo;on track&rdquo;</a> to outpace production through 2050. 



All of which could send lithium prices through the roof.



On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/the-3-most-undervalued-ev-stocks-to-buy-in-may-2024/">The 3 Most Undervalued EV Stocks to Buy in May 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Most Undervalued EV Stocks to Buy in May 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The last couple of years were forgettable for Chinese stocks to buy, but its prospects are now rising. Investment banks are bullish on the potential of Chinese stocks to outperform on the back of multiple tailwinds. Year-to-date (YTD) gains in the&nbsp;iShares MSCI China ETF&nbsp;are ticking higher than the broader market, a trend that&rsquo;s likely to continue for a while.



In 2022 and 2023, Chinese stocks&nbsp;were&nbsp;pummeled&nbsp;by regulatory crackdowns across various sectors. Fears over government intervention and the escalating tensions between the U.S. and China caused investing sentiment in Chinese equities to reach multi-year lows.



However, the situation is&nbsp;completely&nbsp;different in 2024, with analysts pointing to a strong rally in Chinese stocks. According to&nbsp;Goldman Sachs analysts,&nbsp;<a href="https://www.scmp.com/business/banking-finance/article/3261465/goldman-sachs-ubs-bnp-more-positive-chinese-stocks-chorus-favourable-sentiment-grows-run-july-plenum" target="_blank">a potential 40% increase in Chinese A-share valuations</a>&nbsp;is possible. Similarly, UBS upgraded its outlook on the MSCI China Index (NASDAQ:<a href="https://investorplace.com/stock-quotes/mchi-stock-quote/">MCHI</a>) and Hong Kong stocks to overweight. Hence, with a more robust risk appetite and a more conducive investing climate, here are three Chinese stocks to wager on now.



<h2>Alibaba (BABA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/baba1600-300x169.jpg" alt="Alibaba Group headquarters sign located in Hangzhou China BABA stock."><div>Source: Kevin Chen Photography / Shutterstock.com</div></div>Chinese tech giant&nbsp;Alibaba&nbsp;(NASDAQ:<a target="_blank" href="https://investorplace.com/stock-quotes/baba-stock-quote/">BABA</a>) has&nbsp;been a&nbsp;difficult&nbsp;stock to back in recent years. Its stock has nosedived over the past three years,<a target="_blank" href="https://seekingalpha.com/symbol/BABA/momentum/performance">&nbsp;shedding 65%&nbsp;</a>due to regulatory roadblocks in China and broader economic uncertainties. Consequently, BABA stock is now an eye-watering 74% below its all-time high price of $317.14. However, with the tailwinds in the Chinese economy and BABA&rsquo;s strategic initiatives to boost growth, BABA stock presents itself as an excellent value play.



BABA faces stiff competition in&nbsp;its domestic eCommerce market yet remains highly lucrative. According to Statista, the Chinese eCommerce market&nbsp;is expected&nbsp;to grow by 10% through 2029. Moreover, BABA has effectively diversified its eCommerce business to target the international market. In its most recent quarterly results, its consolidated&nbsp;<a target="_blank" href="https://www.digitalcommerce360.com/article/alibaba-revenue/#:~:text=But%20Alibaba's%20sharpest%20ecommerce%20revenue,of%2044%25%20to%20%244.02%20billion.">international growth jumped 44%</a>&nbsp;to $4.02 billion.



Alibaba&rsquo;s proactive approach to the cloud computing&nbsp;market is another linchpin for&nbsp;its long-term success. Estimates indicate that China&rsquo;s public cloud market will double to $137.1 billion by 2028 from $69 billion in 2024. The advent of AI&nbsp;is set&nbsp;to revolutionize the cloud market, and Alibaba is seizing this opportunity.&nbsp;It recently implemented a significant price reduction for more than 100 core public cloud products, a move aimed at fueling&nbsp;AI growth in China.



<h2>BYD (BYDDF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/byd-stock-red-car-1600-300x169.jpg" alt="Close-up of BYD (BYDDY) logo on red car, symbolizing BYDDY stock"><div>Source: shutterstock.com/Trygve Finkelsen</div></div>BYD&nbsp;(OTCMKTS:<a target="_blank" href="https://investorplace.com/stock-quotes/byddf-stock-quote/">BYDDF</a>) is a Chinese EV giant that stands head-and-shoulders above its competition. It&rsquo;s been hot on the heels of EV pioneer Tesla, eventually surpassing it in vehicle deliveries last year. Moreover, despite the downturn in the EV space, its recent performances have solidified its leadership position in the niche.



BYD has triumphed in the intense price war within the EV market over the past few years.&nbsp;This&nbsp;is&nbsp;largely due&nbsp;to its unique battery technology, comprehensive production approach, and the benefits of its massive operational scale. In a recent press release, the EV juggernaut said it delivered&nbsp;<a target="_blank" href="https://seekingalpha.com/news/4097345-byd-reports-vehicle-sales-of-936k-ytd">a whopping&nbsp;936,446 total passenger vehicles</a>&nbsp;YTD. EV sales made up roughly 18%,&nbsp;a figure that&nbsp;continues to rise in contrast to the predominantly higher plug-in hybrid sales.



Furthermore, BYD&nbsp;<a target="_blank" href="https://www.reuters.com/business/autos-transportation/chinas-byd-names-electric-pickup-truck-byd-shark-2024-04-22/#:~:text=SHANGHAI%2C%20April%2022%20(Reuters),improving%20off%2Droad%20driving%20experiences.">announced its latest pickup truck</a>&nbsp;last month, the &ldquo;Shark.&rdquo; It&rsquo;s a direct competitor to Tesla&rsquo;s Cybertruck, with many showing a preference for the Shark. Also, BYD has been making inroads in autonomous vehicle technology, having launched an AI-powered solution&nbsp;to conditionally automate driving. It seems like BYD is telling Tesla, &ldquo;Anything you can do, I can do better.&rdquo;



<h2>Baidu (BIDU)</h2>



<a href="https://investorplace.com/wp-content/uploads/2023/02/bidu1600-2.png"><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/bidu1600-2-300x169.png" alt='An image of a laptop on a table with the screen showing the red and blue logo for Chinese Internet company "Baidu", with the background being blurred.'></a>AI took the stock market to breathtaking heights last year. However, with investors pricing in several years of growth, they&rsquo;re now looking for tangible results. Companies making headway in developing and monetizing AI will likely emerge as long-term winners. In that context,&nbsp;Baidu&nbsp;(NASDAQ:<a target="_blank" href="https://investorplace.com/stock-quotes/bidu-stock-quote/">BIDU</a>)&nbsp; seems to be the most compelling AI story&nbsp;at this point.



Its 2024 Baidu AI Developer Conference unveiled numerous developments and updates, further establishing its dominance in the AI sector. The most obvious one was that its AI chat tool in Ernie Bot&nbsp;<a target="_blank" href="https://seekingalpha.com/news/4089896-baidus-ai-tool-ernie-bot-surpasses-200m-users">now has more than 200 million users</a>. Moreover, over 80,000 clients used Qianfan, its foundation cloud-powered model platform, to develop 190,000 AI applications.



Furthermore, it launched a suite of zero/low-code development tools to enable users to develop AI agents, apps, and models through natural language.&nbsp; Also, it released five new iterations of the Ernie Chatbot to quicken response times while lowering inferencing costs effectively. These powerful developments are essentially part of Baidu&rsquo;s strategy to make AI technology more accessible by effectively reducing costs while boosting computational efficiency.



On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor&rsquo;s of science degree in applied accounting from Oxford Brookes University.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/05/the-3-best-chinese-stocks-to-buy-in-may-2024/">The 3 Best Chinese Stocks to Buy in May 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 3 Best Chinese Stocks to Buy in May 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Zeekr (NYSE:<a href="https://investorplace.com/stock-quotes/zk-stock-quote/">ZK</a>), a Chinese maker of luxury electric vehicles (EVs), holds its IPO today with an initial price of <a href="https://www.cnbc.com/2024/05/09/chinese-ev-maker-zeekr-prices-ipo-at-21-at-the-top-end-of-range-reports-say.html">$21 per share</a>. 



The price is at the top of the expected range. It indicates strong demand for the 21 million American Depository Receipts (ADRs) being offered. Zeekr filed <a href="https://www.sec.gov/Archives/edgar/data/1954042/000110465924057064/tm229938-32_f1a.htm#tUOP">an F-1 document</a> with the Securities and Exchange Commission (SEC) early this month.



However, the most important thing for many to know about Zeekr is that Zeekr is not the story here.



<h2>Zeeker Is Another Geely Joint</h2>



Zeekr is yet another spinoff from Geely (OTCMKTS:<a href="https://investorplace.com/stock-quotes/gelyy-stock-quote/">GELYY</a>), a Chinese maker of both gas-powered and electric cars. It&rsquo;s the second to be traded in New York after Polestar (NASDAQ:<a href="https://investorplace.com/stock-quotes/psny-stock-quote/">PSNY</a>). This was itself spun out from another Geely-controlled brand, Sweden&rsquo;s Volvo (OTCMKTS:<a href="https://investorplace.com/stock-quotes/vlvly-stock-quote/">VLVLY</a>).



Zeekr is competing with Tesla (NASDAQ:<a href="https://investorplace.com/stock-quotes/tsla-stock-quote/">TSLA</a>) at the high end of its range with the <a href="https://insideevs.com/news/718984/geely-zeekr-megacasting-tesla-manufacturing/">Zeeker 001</a>, a wagon-shaped crossover inspired by the Porsche (OTCMKTS:<a href="https://investorplace.com/stock-quotes/drpry-stock-quote/">DRPRY</a>) Panamera. It uses the same platform as the Polestar 4.



By using multiple brands (with multiple stocks), Geely can deliver a wide range of EVs. This includes <a href="https://electrek.co/2024/04/09/geely-panda-mini-ev-kart/">the Panda line</a> of mini-EVs priced from $5,500 to $7,500. It also includes the <a href="https://gagadget.com/en/454528-competitor-to-the-vw-id4-and-tesla-model-y-geely-has-unveiled-the-galaxy-e5-compact-electric-crossover/">Galaxy E5</a>, which competes with the Volkswagen (OTCMKTS:<a href="https://investorplace.com/stock-quotes/vwagy-stock-quote/">VWAGY</a>) ID.4.



Not everything Geely touches turns to gold. Geely itself was late to the EV market and now <a href="https://www.bloomberg.com/news/articles/2024-04-02/byd-s-ev-rise-is-black-eye-for-china-auto-giant-geely">badly trails</a> BYD (OTCMKTS:<a href="https://investorplace.com/stock-quotes/byddf-stock-quote/">BYDDF</a>) overall. It&rsquo;s also still innovating on <a href="https://www.reuters.com/markets/deals/renault-geely-expect-finalise-combustion-engines-joint-venture-deal-end-february-2024-02-09/">engines</a>, including <a href="https://www.ecoticias.com/en/new-hybrid-engine/1877/">hydrogen engines</a>.



Polestar has delayed releasing financial results <a href="https://fortune.com/europe/2024/05/01/swedish-ev-maker-polestar-accounting-error-second-time-in-year-sluggish-auto-sales-cash-burn/">twice in the past year</a> due to accounting problems. Geely also raised cash recently by selling <a href="https://www.autoblog.com/2024/04/20/geely-to-sell-1-3-billion-of-volvo-truck-shares/">$1.3 billion worth </a>of Volvo shares.



Geely is doing deals to buy innovation it doesn&rsquo;t have in-house. This includes a recent deal with Nio (NYSE:<a href="https://investorplace.com/stock-quotes/nio-stock-quote/">NIO</a>) covering <a href="https://www.reuters.com/business/autos-transportation/chinas-nio-teams-up-with-geely-battery-swapping-projects-media-2023-11-29/">battery swapping</a>. It also includes one with an Israeli start-up on <a href="https://nocamels.com/2024/05/chinese-car-giant-using-israeli-tech-to-test-autonomous-vehicles/">autonomous driving</a>.



<h2>ZK Stock: What Happens Next?</h2>



Geely has many moving parts, of which Zeekr is just one. This can make it hard for investors.



In the Zeekr IPO and ZK stock, you&rsquo;re just buying one piece of a giant company that will make <a href="https://www.just-auto.com/features/geely-group-the-future-models/">3 million cars this year</a>. Whether Geely remains committed to Zeekr, as with Volvo, will always be unclear.



On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the&nbsp;InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div><a href="http://www.danablankenhorn.com/">Dana Blankenhorn</a> has been a financial and technology journalist since 1978. He is the author of <a href="https://www.amazon.com/Technologys-Big-Bang-Yesterday-Tomorrow-ebook/dp/B0829C7XSF">Technology&rsquo;s Big Bang: Yesterday, Today and Tomorrow with Moore&rsquo;s Law</a>, available at the Amazon Kindle store. Tweet him at <a href="http://www.twitter.com/danablankenhorn">@danablankenhorn</a>, connect with him on <a href="https://journa.host/@DanaBlankenhorn"> Mastodon</a> or subscribe to his <a href="https://danafblankenhorn.substack.com/">Substack</a>.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/05/zk-stock-alert-7-things-to-know-as-zeekr-starts-trading-today/">ZK Stock Alert: 7 Things to Know as Zeekr Starts Trading Today</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.