Al Root
BYD stock jumped on Tuesday after the Chinese maker of electric vehicles released first-quarter guidance. Now, it makes as much money as Tesla.
Shares were up 4.8% in overseas trading, while S&P 500 and Dow Jones Industrial Average futures were up 1.5% and 2%, respectively.
Better-than-expected financial results led to the jump. Tuesday, the company said it expects first-quarter net income of $1.2 billion to $1.4 billion. The $1.3 billion midpoint is better than the $820 million forecast by Wall Street, according to FactSet.
Tesla is expected to make almost $1.4 billion in the equivalent quarter. Estimates are still slightly higher than BYD, but they've been coming down. They were $1.7 billion before Tesla's relatively disappointing first-quarter delivery results. Tesla delivered about 337,000 vehicles, down 13% year over year.
BYD delivered almost 1 million cars, up 58% year over year, including about 416,000 all-electric vehicles.
BYD delivered more all-electric cars than Tesla in the first quarter. BYD has delivered more all-electric cars than Tesla three times. BYD's automotive sales in the fourth quarter also topped Tesla's. That was the first time that happened.
If BYD's first-quarter net income comes in at the high end of its guidance, and Tesla earns only a hair less than estimates, BYD will make more money than Tesla.
It will be another feather in the cap of the Chinese car company, and another warning for Elon Musk's EV firm.
Reversing the trend will likely require more cars. Tesla is slated to launch a lower-priced EV this year. Investors haven't seen a prototype yet.
Tuesday's gains pushed BYD stock up 24% year to date and 64% over the past 12 months.
Growth is a big reason for the momentum. Over the past 12 months, BYD has delivered about 4.6 million passenger vehicles, up almost 50% year over year. About 40%, or 1.9 million, were all electric.
Tesla has delivered about 1.7 million all-electric cars over the past 12 months, down about 2% year over year.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 08, 2025 07:52 ET (11:52 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.