Following the release of the Chinese electric vehicle manufacturer’s first-quarter guidance, the stock of BYD 1211 +4.82% surged on Tuesday. It now generates the same amount of revenue as Tesla TSLA +3.97%.
While the Dow Jones Industrial Average DJIA +2.01% and S&P 500 SPX +2.11% were up 3.1% and recovered from recent tariff-induced falls, shares were up 4.8% in foreign trade.
BYD stock jumped as a result of better-than-expected financial performance. The business stated on Tuesday that it anticipates first-quarter net income of between $1.2 billion and $1.4 billion. According to FactSet, the $1.3 billion midpoint is superior to Wall Street’s $820 million prediction.
Elon Musk, the CEO of Tesla, is predicted to earn over $1.4 billion in the same period. Although they have been declining, estimates are still a little higher than those for BYD. Prior to Tesla’s somewhat underwhelming first-quarter delivery statistics, they were $1.7 billion. About 337,000 Tesla vehicles were delivered, a 13% decrease from the previous year.
Nearly 1 million cars, including roughly 416,000 all-electric vehicles, were supplied by BYD, a 58% increase from the previous year.
In the first quarter, BYD delivered more all-electric vehicles than Tesla. Three times as many all-electric vehicles have been delivered by BYD than by Tesla. In the fourth quarter, BYD’s car sales also exceeded Tesla’s. That occurred for the first time.
BYD will outperform Tesla if its first-quarter net income is at the high end of its guidance and Tesla’s earnings are only slightly below projections.
It will serve as both a warning to Musk’s electric vehicle manufacturer and another feather in the cap of the Chinese automaker.
More cars will probably be needed to reverse the trend. This year, Tesla plans to introduce a more affordable EV. A prototype has not yet been shown to investors.
With Tuesday’s advances, BYD’s stock has risen 64% over the last 12 months and 24% so far this year.
One of the main causes of the momentum is growth. BYD has supplied over 4.6 million passenger cars in the last 12 months, an increase of nearly 50% from the previous year. 1.9 million, or around 40%, were entirely electric.
Over the last 12 months, Tesla has delivered over 1.7 million all-electric vehicles, a 2% decrease from the previous year.
Early Tuesday trading saw a 4.3% increase in Tesla stock to $243.40. Shares have dropped almost 40% this year due to early gains.
