![[Gamma] Scalping Please](https://ibkrcampus.com/wp-content/smush-webp/2024/04/tir-featured-8-700x394.jpg.webp "[Gamma] Scalping Please")
What’s going on?
Chinese carmaker BYD zoomed ahead on its own high-speed growth track last quarter.
What does this mean?
While other carmakers have been busy duking it out in price wars, BYD’s got a lot of mileage out of staying in its own lane. And by “mileage”, we’re talking global sales of 550,000 last quarter, sending operating revenue skyward by a staggering 80%. See, one of BYD’s secret weapons is an uber-efficient supply chain, owned by the company itself, covering everything from batteries to chips. And that smooth operation meant that even splurging on new factories didn’t put too much of a dent in profit. In fact, BYD managed to post a mind-boggling 411% profit spike compared to the same time last year – blowing past expectations and even topping 2022’s 400% annual growth.
Why should I care?
Zooming in: Overtaking – and taking over.
BYD’s pedal-to-the-metal performance is bound to prompt some road rage from other global carmakers. See, foreign brands held a comfy 70% share of China’s car market not so long ago. But then along came EVs, and local brands like BYD floored it, leaving the competition in their (environmentally friendly) dust. BYD’s sales figures tell the tale: the company has now sped past Volkswagen, China’s top-selling car brand since 2008, for the first time ever. And with BYD racing past that milestone earlier than planned, rival carmakers had better keep an eye on their own speedometers.
The bigger picture: BYD FTW.
Analysts reckon BYD’s got plenty more left in the tank. With a parade of new models showcased at this month’s Shanghai auto show, the firm’s covering all its bases, from budget-friendly rides to luxury cruisers. And BYD’s got ambitious plans to nearly double last year’s sales in 2023, revving up for a major push into Europe, Latin America, and Asia. Competitors, consider yourselves warned.
—
Originally Posted April 28, 2023 – Wheels Of Fortune
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Finimize and is being posted with its permission. The views expressed in this material are solely those of the author and/or Finimize and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.