BYD (BYDDF) reported second-quarter profits nearly tripled after the Chinese electric vehicle and battery giant reported record deliveries during the period. BYD stock rose slightly on Friday, on track for a fifth consecutive gain. Tesla stock peaked in 2023.
The electric vehicle maker backed by rival Warren Buffett You’re here (TSLA), expects its net profit for the first half of the year to reach RMB10.5 billion-RMB11.7 billion ($1.64 billion). That would be up 225% year-over-year, CnEVPost.com reported Friday, citing BYD’s earnings outlook.
Considering the first quarter net profit of RMB 4.13 billion, this implies that the second quarter net profit will reach RMB 6.37 billion and RMB 7.57 billion. The top of the range would mark an absolute record. It would also increase up to 171% year over year and up to 83% from the first quarter.
In the second quarter, BYD delivered 700,244 electric vehicles, including hybrid vehicles. This was capped off by a strong month of June, which saw monthly sales surpass 250,000 units for the first time.
Tesla also posted record sales in the second quarter. Tesla delivered 466,140 electric vehicles worldwide last quarter, including 247,217 cars made in China.
Among Chinese EV startups, Li-Auto (LI) led second quarter sales by a margin. But Nio (NIO) and XPeng (LI) saw its sales improve thanks to new models and price cuts.
Tesla lowered prices in China earlier this year to boost sales. This has fueled an electric vehicle price war, with rivals like BYD also slashing prices or launching new, cheaper models.
BYD Stock, Nio Stock
Trading on Friday, shares rose 1.8% to 34.64. BYD stock, which trades over-the-counter, is up more than 4% this week. Stocks bounced off their 50-day moving average last week and broke off their 21-day line this week.
BYD’s stock is arguably still exploitable from these key levels. The electric vehicle giant could also forge a new consolidation above a cup base with front handle.
Tesla stock rose 2.5%, hitting a 2023 high at 285.30 intraday. Tesla’s earnings are due July 19.
Shares of EV startups, including Li Auto, Nio and XPeng, all fell slightly on Friday. For the week, Nio stock outperforms its start-up rivals, on track for a weekly gain of 6%. It comes as Wall Street sees Nio poised for a stronger second half of 2023 thanks to new, more affordable Nio electric vehicles.
BYD Battery News
Sources told Reuters on Friday that China’s BYD had submitted a $1 billion investment proposal to build electric cars and batteries in India in partnership with a local company.
BYD has already made a small foray into selling electric vehicles in this market. Tesla is trying to get the green light for an Indian factory.
An unconfirmed social media post also said on Friday that BYD had begun trial production of Blade sodium-ion batteries for energy storage systems.
YOU MIGHT ALSO LIKE:
These are the 5 best stocks to buy and watch right now
Stocks to watch: IPOs, large caps and top-rated growth stocks
Find the latest stocks reaching buy zones with MarketSmith
Why This IBD Tool Simplifies Finding Best Stocks
Looking for the next big winners in the stock market? Start with these 3 steps