BYD stocks makes new high
Following the launch of a five-minute electric vehicle battery, the stock of BYD enjoys a massive increase, reaching a peak that has never been seen before. Following the launch of a new line of electric vehicles, which the Chinese automaker claims can charge nearly as quickly as conventional vehicles can be refueled, shares of BYD Company jumped to an all-time high. This was the first time shareholders had ever seen such a surge. The market capitalization of the automobile manufacturer increased to about $162 billion, exceeding the combined valuations of Ford Motor Company, General Motors Company, and Volkswagen AG. The market capitalization of the automaker increased by as much as 6% at the beginning of trading in Hong Kong on Tuesday for the first time.
During the testing of the new Han L car, the Chairman and creator of BYD, Wang Chuanfu, announced that the company’s most recent battery and charging technology exhibited the capability to give roughly 400 kilometers (249 miles) of range in just five minutes. From the beginning of the next month, the manufacturer is planning to start selling automobiles that are fitted with the upgraded technology. Those drivers who are reluctant to make extended pauses may be persuaded to switch to electric options if they are able to recharge an electric car in the same amount of time that it takes a conventional vehicle powered by a combustion engine to refuel at a gas station.
According to a recent note, analysts from Macquarie Capital, lead by Eugene Hsiao, who is the head of China cars, noted that this move further demonstrates that BYD is undergoing a strategic transformation. “Rather than engaging in price competition, concentrating solely on vehicle design, or venturing into new product categories, it appears that BYD is looking for opportunities to utilize its scale and fundamental electric vehicle technologies in order to differentiate itself in a landscape that is extremely competitive.” “By directly tackling one of the primary obstacles to battery electric vehicle adoption (charging speed), the company is providing consumers with a more straightforward transition from internal combustion engines to electric vehicles,” they added. “Charging speed is one of the primary obstacles.”
BYD, which has emerged as a serious competitor to Tesla Inc. in the worldwide market for electric vehicles, may be able to gain an additional advantage with the new platform, which is going to accommodate a variety of electric vehicles that are going to be released in the near future. With a loss of 49% in February compared to the same month the previous year, Tesla’s shipments to China witnessed a dramatic decline, resulting in a total of only 30,688 vehicles being delivered to China. For the first time since July 2022, this result represents the lowest monthly total. For the purpose of accommodating the recently improved electric vehicles, BYD has committed to establishing more than 4,000 charging stations across the entirety of China. The announcement did not include any specifics regarding the timing or the financial implications that would be associated with the completion of the deployment. Through the sale of shares, the corporation was able to effectively raise around $5.6 billion earlier this month.
Tesla’s Superchargers, which are capable of giving up to 275 kilometers of range in just 15 minutes, would be greatly outpaced by the charging speeds that would be achieved by these facilities. Over 65,000 Superchargers are located all over the world, making Tesla’s infrastructure substantially more extensive than those of its competitors. With only ten minutes of charging time, the Mercedes-Benz Group AG’s entry-level CLA electric vehicle, which was just recently introduced to the public, has the capacity to increase its range by 325 kilometers. During the occasion that took place at the headquarters of the automobile manufacturer in Shenzhen, Wang made the announcement that BYD’s new electric vehicle platform will make it possible for automobiles to reach a speed of 100 kilometers per hour in under two seconds.
The Han L and the Tang L sport utility vehicle will be the first vehicles to be equipped with the technology that enables ultra-fast charging technologies. The first pricing will be set at 270,000 yuan, which is equivalent to $37,338. The price will increase to 280,000 yuan from there. Sales will begin in April. Over 4,000 charging stations that are specifically designed to accommodate the upcoming technology are going to be established by BYD. By “elevating the game to another dimension,” as stated by Lei Xing, an independent expert who specializes in the Chinese automotive sector, BYD is “elevating the game.”
The beginning of the year 2025 has been a very successful one for BYD. During the previous month, the company, which is only engaged in the production of hybrid and completely electric automobiles, documented sales that exceeded 318,000 passenger cars. This represents a tremendous rise of 161% when compared to the same time period in the previous year. A market share that is quite close to fifteen percent is held by the most successful automobile maker in China, which is widely acknowledged as the greatest automotive market in the world. According to Joanna Chen, a China automotive analyst at Bloomberg Intelligence, an improved electric vehicle powertrain has the potential to considerably increase demand for BYD’s next-generation automobiles. This is the conclusion reached by Chen. She made the following statement: “This may signify the beginning of a new phase in model introductions, which could potentially drive BYD’s sales of battery-electric vehicles to align with hybrids after a decline in 2024.”
BYD is starting to position itself as a leader in the development of cutting-edge technology for driver assistance. The company made the announcement earlier this year that it will be implementing a strategy to democratize advanced driving technologies by introducing features such as adaptive cruise control and lane-keeping assistance into a selection of its more economical vehicles. It is possible that Contemporary Amperex Technology Co. Ltd., which is currently the largest maker of electric vehicle batteries in the world, may face a serious competitive competition from BYD’s Super e-Platform. Li Auto Inc. is utilizing one of the most recent generation of batteries manufactured by CATL, which enables the company to provide a charging capability that enables a range of 500 kilometers in just 12 minutes.
