escobar
Brigadier
BYD not very profitable compared to Tesla. Net income of $123 million in Q1 vs Tesla $5.4 billion
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
supercat
Major
BYD sales in June:
Sales in June by other major Chinese EV makers:
BYD sales in the first half of 2022: 641,350
Sales of other major Chinese EV makers in the first half of 2022:
Today's evidence that the "Uyghur law" won't work:
Sales in June by other major Chinese EV makers:
BYD sales in the first half of 2022: 641,350
Sales of other major Chinese EV makers in the first half of 2022:
Today's evidence that the "Uyghur law" won't work:
Tesla net income was 3.3 billion. Not 5.4. not sure where you got that number. It's still high but not that high.
supercat
Major
I think 2020 was the 1st year Tesla became profitable. So Tesla only has 3 profitable years so far. Let's give BYD more time.
Who cares..
Its expansion time. All money should be invested in production increase, I am sure the investors also want the same (unless you are the type of guy who sold Amazon 10 years ago for being "unprofitable" lol).
BYD can easily return sizeable profits when it grabs a >30-40% market share in 2025 (with ICE cars numbers reduced)
How about instead of talking about profitability, you check its revenue growth (what investors truly look for in fast-growing companies)
Profit can wait, BYD is a company who produces cars not a car company,most of its profit comes from elsewhere like semiconductor or battery ,even masks, it’s basically an industry complex , that’s why companies like Nio/Xpeng or Lucid/Rivian don’t stand a chance, my personal opinion, in the next level of competition, you have to be able to make everything especially that damn battery pack, Tesla isn’t there yet but soon for sure,VW owns part of Gotion hightech ,Kia/Hyundai has LG,GAC has their own plants...... and others, well, playground isn’t for everyone, they could survive but certainly not thrive
Note how Tesla has racked up years of losses in prior years and flirted with bankruptcy many times.
BYD has been consistently far more profitable over the past decades.
And now BYD is at the stage where it wants to expand and grab as much market share as possible. That does take some time to translate into profits.
This is actually not the right way to look at it. As Musk recently commented, Berlin and Austin are both losing a lot of money. He is struggling trying to turn them to profitable production. When compared to Tesla, what BYD is doing in terms of expansion is insane. It has invested a lot of Capex and hired a lot of people for these new factories. And they got these factories into production ready in 10 months! It take a lot of effort to fast forward production and get factories into the more efficient mode as possible. And when we look at BYD, a whole lot of its production has come from factories that just got put into production in the past year. As such, it's a miracle they are able to scale up production, build so many new factories, invest in so many new project and still be profitable.
Remember when Amazon was losing money quarter after quarter? Did anyone ever doubt that all those investment would pay off? Now, Amazon dominates everywhere. Although westerners can't say, that's the strategy BYD is going for. It's looking to dominate everywhere. It is seeking to dominate every automobile segment with all the new models coming in Denza and ultra luxury brand. It's even coming out with a pickup truck and trying to electrify everything. It will enter many international market in the next year or two. It is looking to be the largest battery maker. It is looking to be the largest energy storage provider. It is looking to be the largest NEV motor provider. It is looking to be the largest EV semiconductor provider. If you have money right now, you should be placing your bet with BYD rather than any other automotive/renewable company.
At this fast pace of expansion, how is BYD's quality control? How about their cars fit and finish standards?