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The electric vehicle industry has grown rapidly in the past few years, which has helped boost key players like Tesla, Nio, and Rivian. While the industry is going through some headwinds, the number of EVs and hybrids sold this year will reach over 14.1 million.
EV industry is growing
Tesla (NASDAQ:TSLA), the biggest automaker in terms of market cap, is in a pole position in the industry. It expects to deliver 1.8 million vehicles in 2023, much higher than the 499,535 it sold in 2020 and the 50k it delivered in 2015.
Nio has also done well over the years even though its stock price has recoiled. The company has delivered over 415k vehicles and the management hopes to continue ramping up its growth. Nio has a market cap of over $15.5 billion.
The other top EV companies to watch are American brands like Rivian and Lucid. Chinese companies like Li Auto and Xpeng are also doing well. These companies are taking advantage of the big Chinese market, which is one of the fastest growing in the world.
Chinese residents are expected to buy over 8 million electric vehicles in 2023. And unlike in other countries, Chinese have more choices of EVs, with the number of brands being about 90.
Byd aims to dethrone Tesla
There are many well-known Chinese EV companies, including Li Auto, Xpeng, and Nio. Behind the surface, Byd, which was started by Wang Chuanfu, is aiming to become the biggest EV company in the world in terms of sales. Yet many people have never heard of the brand.
Analysts believe that Byd will overtake Tesla in the fourth quarter in a move that will solidify China as a key player in the automobile industry. While China has had an auto industry for a long time, the global industry has been dominated by European, Japanese, South Korean, and American brands.
Byd has been one of the fastest-growing EV companies in the world. The company sold over 1.8 million vehicles in 2022 and has already sold over 2 million vehicles this year. In November, the company sold over 301k vehicles, a figure that includes its hybrids.
Byd is benefiting from strong domestic demand in China, where its cars are much cheaper than those of its peers. It is also expanding its international presence. Just last week, the company announced a plan to launch a Hungarian plant that will give it a presence in Europe.
Western capitals are taking note and racing to protect their local industries. Joe Biden is considering adding tariffs for Chinese brands while Europe is investigating the role of subsidies in China’s EV market.
The challenge is that these investigations and tariffs could bite American brands in China. Besides, China is a key market for many companies like Tesla, VW, and BMW.
The other issue for companies like Tesla, Xpeng, and Nio is that Byd’s vehicles are both good and affordable. A closer look at the technology inside Byd’s vehicles shows that it is comparable to other Western brands.
Therefore, there is a likelihood that Byd stock price will do better than other EVs as it aims to expand its business internationally. The challenge for most people is that it is impossible to invest in Byd since it is listed in Shenzhen and Hong Kong. In a recent note, analysts at Bernstein said that Byd should be worth like Tesla.
Watch here: https://www.youtube.com/embed/vwR0pjwuIAQ?feature=oembedThe post Dear Nio, Xpeng, and Tesla fans: Wang Chuanfu is up to something appeared first on Invezz
