- Summary:
- BYD stock price is on an upbeat momentum driven by impressive earnings and a breakthrough charging system that could disrupt the EV market.
BYD stock price was up on Wednesday as investors digested the company’s latest earnings figures. The Hong Kong Exchange-listed stock traded at HK$ 398 and was up by 2.3% at press time, bringing its year-to-date gains to 50%. However, the stock remains under pressure as some investors take profit after the recent rise to record highs.
BYD vs Tesla: Who is Winning?
The Chinese EV company reported revenues of $107 billion for full year 2024, beating Tesla by about $10 billion during the same period. The revenue represented a 34% year-on-year growth, while net income grew by 29% to $5.5 billion. Its total sales reached 1.76 million BEVs for the full year, slightly less than Tesla’s 1.79 million. However, its BEV sales beating Tesla by about 100,000 in Q4 2024.
That said a deeper look into BYD’s financials shows that it is still behind Tesla in pure EV revenue. First, 20.5% of its $107 billion revenue includes earnings from smartphone sales. Secondly, unlike Tesla, BYD (SHE: 002594) does not produce BEVs only, but also hybrid vehicles. This gives it a more diverse market, which helps explain its revenue windfall.
Nonetheless, BYD stock price is yet to exhaust the momentum created by its fast charging stations. That momentum will likely resume in the coming days, and could result in an extended upside for the stock. Meanwhile, Bernstein analysts have reiterated their Outperform rating for BYD stock price, with a price target of HK$ 350.
BYD Stock Price Prediction
BYD stock price pivots at HK$ 390 and the momentum calls for further upside. The stock will likely meet initial resistance at HK $403. A stronger momentum will break above that level and test the second resistance at HK$ 413.
Conversely, moving below HK$390 will shift the momentum to the downside. That will likely see the first support come at HK$ 380. Breaking below that level will invalidate the upside narrative and could potentially clear the path to test the second support at HK$ 369.
