Chinese EV maker BYD expects to earn between $2.4 billion and $2.5 billion in 2022, beating analyst forecasts.
Kiyoshi Ota/Bloomberg
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The second largest EV company is also the second most profitable EV company, most likely
Tesla
CEO Elon Musk is watching.
Chinese EV maker on Monday
BYD
(Ticker: 1211. Hong Kong) has updated its full-year 2022 earnings for investors. Analysts had predicted about $2.3 billion, according to FactSet.
The full year numbers show fourth quarter earnings per share of approximately 33 cents. Analysts had forecast about 28 cents.
Shares fell 2.7% in overseas trading on Monday. The update came out after the Hong Kong market was closed.
BYD
of US-traded American Depositary Receipts (ADRs) are up about 1%.of
S&P 500
0.5% less.of
Dow Jones Industrial Average
Flat.
BYD only manufactures electric vehicles and also manufactures EV batteries. The company said he will deliver about 1.9 million electric vehicles in 2022. About 911,000 of them were all-battery electric vehicles.
Tesla
(TSLA) is the largest manufacturer of EVs. We have delivered approximately 1.3 million vehicles worldwide. About 420,000 vehicles were delivered in China, nearly doubling BYD’s market share.
Tesla
in the country.
However, BYD vehicles are cheaper than Tesla vehicles. BYD also offers more EV models than Tesla.
BYD and Tesla are the only electric car makers that are consistently profitable. Tesla remains much more profitable than BYD.
BYD’s 2022 net profit margin is about 4%. Tesla will generate a net profit of about $12.6 billion in 2022, with a margin of about 15%.
Despite the profit gap, Tesla is eyeing competition in China. “Chinese people are scary, we always say that,” Tesla vice president of vehicle engineering Lars Moravy said at the company’s earnings call on Jan. 25. “People are always looking at EV market share, but we are always looking at how much of the total vehicle space we own.”
Battery electric vehicles will account for less than 10% of global light vehicle sales in 2022, so Moravy believes Tesla has more than 90% of the market it can target, regardless of competition.
“We have a lot of respect for Chinese car companies. They’re the most competitive in the world. That’s our experience,” Musk said on the same earnings call. there [is] Next to Tesla is probably a non-Chinese company. ”
Musk was probably talking about BYD. Tesla did not respond to a request for comment on who Musk sees as its toughest competitor in China.
Tesla shares are down about 2.9% in midday trading on Monday. BYD may not be the cause. The overall market is weak.of
NASDAQ Composite
1.2% decrease. Tesla shares have plummeted, up about 41% so far this year, including Monday’s decline.
Please contact Al Root (allen.root@dowjones.com).
