BYD

With so much attention being paid to Tesla stock a couple of days before, as this Elon Musk's brainchild has just begun to take off after a lasting correction phase, it's high time to look back at Tesla's main Chinese competitor, also involved in the EV and battery business, the BYD Corporation. Besides automobiles and related products, another widely known segment of its activity is production of mobile handset components. If so, it's a well-diversified business. And its stock price, unlike Tesla, reached a fresh historical high on March 20, putting its icing on a 65% growth cake since the beginning of the year. That's impressive, but doesn't promise a long stop on an ascending road.

A small pullback from 426 HKD to just below 400 HKD (all price levels here are from the Hong Kong exchange) has already sparked interest in new purchases, following a clearly bullish earnings release this Monday. In terms of U.S.-listed BYD ADR assets, the company generated $1.42 per share vs the market consensus estimate of $1.09, on record sales of $37.84 billion in the U.S. currency. On March 27 BYD ADR assets added another 2.5% at the Wall St opening, totally unaffected by President Trump's announced plan tonight to implement 25% tariffs on all imported cars and light trucks. The decision is effective next week and put the suffering General Motors (GM) stock sliding more than 6% down, while both Ford (F) and Stellantis (STLA) lost nearly 3%. It is obvious that the American market is not yet an important target niche for BYD, which is reflected in the comparative market dynamics in its favour.

Meanwhile, in the China region, the company is promoting ultra-fast charging capabilities and, including a nationwide charging network of over 4,000 units in mainland China. BYD just unveiled its "super e-platform" with a 1,000-volt architecture, so that it becomes possible to reach its maximum charging speeds up to 1,000 kilowatts to grant its EV cars approximately 400 kilometres of range with just a five-minute charge. A game changing project starts by early April with the first batch of about 500 charging units, which was exactly the reason behind this new upside wave in BYD stock. BYD strongly relies on plug-in hybrids for sales, but increased its efforts in the EV area to compete with Tesla for dominance in Asian markets. For me, both Tesla stock and BYD stock will grow faster in the nearest two or three months, with the next target price for BYD holding well above 450 HKD per share.