BYD vs Tesla: The 2023 Showdown in Electric Vehicle Stocks

BYD vs Tesla: The 2023 Showdown in Electric Vehicle Stocks

BYD, a Chinese electric vehicle (EV) manufacturer, is often compared with Tesla as a stock option, but in 2023, it saw a modest growth. BYD stock only rose about 5% compared to Tesla way ahead at a 107% increase.

If we’re including the plug-in hybrids that BYD makes, they sold more cars in 2023 than Tesla, with fairly similar profits, reporting nearly identical profits in the third quarter of 2023.

This raises the question: why isn’t BYD’s stock rising as rapidly?

There are concerns about BYD’s lack of in-house autonomous-driving technology, but that could be due to change as there is a technology day on January 24th for BYD to showcase its developments.

However, BYD’s biggest hindrance is tariffs in Europe and the US. Europe currently has a 10% tariff rate on car imports and the US has a 27.5% rate, with both regions potentially hiking tariffs. This would be a massive imposition on BYD’s export business and future share price.

Given these sales figures, some analysts are rating BYD as a ‘buy’. In light of these considerations and Tesla’s stock volatility, it raises the question: is BYD a more viable EV stock option?

The above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.

*No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.

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