BYD is one of the biggest names in the electric vehicle (EV) industry right now. In 2024, the Chinese car manufacturer sold approximately 1.8 million EVs – roughly the same number as Tesla sold. Can you buy shares in BYD? Absolutely. Here’s how.
Who is BYD?
Founded in 1995, BYD is a Chinese multinational manufacturing company headquartered in Shenzhen, Guangdong. Its acronym, BYD, stands for ‘Build Your Dreams’.
While BYD is known for its EVs, the company is quite broad in nature. Today, it produces cars, electronics, new energy solutions, and rail transit solutions.
How to buy BYD shares
There are several ways to buy BYD shares in the UK.
One way is to purchase the company’s Hong Kong-listed shares. These trade under ticker 01211.HK. Not many brokers in the UK offer access to these shares. Those that do include interactive investor and eToro.
A second way is to buy BYD’s US-listed ADR (American Depositary Receipt) shares. These trade under ticker BYDDY on the OTC Markets (OTCMKTS). Several brokers in the UK offer access to these shares. These include Hargreaves Lansdown, IG, and Saxo.
Is BYD stock worth buying?
BYD shares have quite a bit of potential, in my view.
For starters, the company is enjoying a lot of success on the automotive front. Last year, it sold a record 4.3 million vehicles globally when its hybrid vehicles are taken into account.
It’s worth noting here that the company recently launched a lower-priced car to rival Tesla’s Model 3. The Model 3 has long been the top selling EV in China.
Secondly, the company is developing some really powerful battery technology. Recently, it launched the Super e-Platform, which can charge an EV in around five minutes.
Additionally, its financials look strong. In 2024, revenue rose by 29% to 777 billion yuan (approx. $107 billion) – topping the $98 billion reported by Tesla.
What are the risks?
There are risks to be aware of, however.
In this industry, companies face a lot of competition. Today, BYD is up against Tesla, Mercedes-Benz, BMW, and many other players.
Another risk is tariffs. In Europe, BYD now faces an additional 17% tariff on top of the existing 10% flat rate the EU imposed before its investigation into Chinese BEV imports.
It’s also worth pointing out that the automotive industry is cyclical. In a recession, consumers tend to hold back on large purchases like new cars.
BYD stock vs Tesla stock
In terms of how BYD stock stacks up against Tesla, here are some key financials:
| BYD | Tesla | |
| Market cap | $155 bn | $870 bn |
| 2024 sales | $107 bn | $98 bn |
| 2024 revenue growth | 29% | 1% |
| 2024 net profit | $5.6 bn | $7.1 bn |
| P/E ratio | 21 | 104 |
Looking at these numbers, BYD looks the more attractive investment to me. Not only is it growing at a faster rate than Tesla, but it is significantly cheaper in terms of its valuation.
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
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