BYD shares slip as Tesla rival says profits surge but lag estimates

BYD shares slumped 4% in Hong Kong on Tuesday, as the electric car maker said its earnings for the year would surge but lag analyst estimates.

said its earnings would rise between 74% and 86% above last year’s 16.62 billion renminbi. But the top end of that guidance range, 31 billion renminbi ($4.4 billion), lagged the Visible Alpha-compiled analyst estimate of 31.23 billion renminbi.

BYD did not provide any revenue figures. BYD, in which Warren Buffett’s Berkshire Hathaway
has about an 8% stake, previously reported record sales volume of 3.02 million vehicles, or 62% growth.

“Despite the increasingly fierce competition in the industry, the company achieved significant improvement in profitability and demonstrated strong resilience by virtue of the continuous improvement in brand power, rapid growth in overseas sales volume, continuously expanding scale advantage and strong cost control capability in industrial chain,” the company said in a statement.

is far more profitable, earning $15 billion last year, despite selling 1.8 million vehicles.

BYD shares have skidded 17% this year, though Tesla stock has done worse, falling 23%.

Autos and related products accounted for about 80% of BYD’s first-half revenue, with its mobile phone businesses accounting for most of the rest.

Source link

About The Author

Scroll to Top