BYD flags huge quarterly profit jump as China sales surge past Tesla
China’s biggest electric car maker, said third-quarter net profit likely more than quadrupled as it extends its sales lead over Tesla Inc (TSLA.O) in the world’s largest auto market. Shares in BYD jumped.
Having ditched gasoline vehicles from its product mix this year, BYD has, more than any other automaker, been able to capitalise on a range of incentives for electric cars offered by the Chinese central government as well as local governments
Robust sales and a product range broader than other EV competitors have in turn allowed the company, which is 19% owned by Warren Buffett’s Berkshire Hathaway (BRKa.N), to significantly reduce costs per vehicle.
An improved product mix led by vehicles such as its upmarket Han sedan has also helped drive earnings.
BYD estimated net profit for the July-September quarter to come in between 5.5 billion yuan and 5.9 billion yuan ($765 million to $820 million) – an increase of 333% to 365% from the same period a year earlier.
Its Hong Kong-listed shares shot 6% higher by Tuesday afternoon, giving the automaker a market capitalisation of around $93 billion – not far off the combined market values of General Motors Co (GM.N) and Ford Motor Co (F.N). Its Shenzhen-listed shares climbed 5%.
BYD’s combined sales of pure electric and hybrid plug-in vehicles increased 250% in the first nine months to 1.2 million units, outpacing a 110% rise for the overall EV segment.
Source : reuters
