12/10/2023 0 Comments Asian lattice mathTerry Gou avoided commenting on China’s probe of Foxconn Technology Group in the first appearances he has made in his campaign to become Taiwan’s next president since mainland authorities announced their investigation.There is growing evidence that Apple Inc.’s latest iPhone is falling shy of its predecessor in China, suggesting a setback for the world’s most valuable company in its most important overseas market.All three stocks edged higher on on Monday. as big tech firms ramp up AI offerings to entice customers. Investors have scrutinized cloud businesses at Alphabet, Inc. shares fell 9.9% last week, shedding about $180 billion in market value, as the Google parent reported a smaller than expected profit in cloud computing. “Investors will have to wake up to BYD next year when its two high-end brands begin deliveries, and it exports noticeably into new markets,” he added.Īlphabet Inc. “There is definitely a heavy China discount on the stock, but I don’t see it getting worse,” said Taylor Ogan, chief executive officer of hedge fund Snow Bull Capital, which owns shares in both BYD and Tesla. Other headwinds for the shares include the European Union’s anti-subsidies probe into EVs made in China. While BYD has been backed by Warren Buffett, Berkshire Hathaway Inc.’s selling of shares since last year may have weighed down its share price. Recent options data also look positive, as the volatility skew has shifted toward the more bullish side compared with a month ago. The improving profit outlook has helped make BYD’s stock more attractive, driving its forward earnings multiple down to about 18 times, compared with over 50 times for Tesla. ![]() Outside of China, BYD claims high shares in countries including Brazil, though tax and political considerations have kept it from entering the US passenger-car market. Tesla, EV Investors Face a Reckoning as Demand Starts to CrackīYD is expected to start deliveries of its high-end Yangwang U8 and Fang Cheng Bao BAO 5 in the fourth quarter, according to pundits at HSBC Holdings PLC. The analysts believe BYD can maintain its profitability into next year thanks to more sales of high-end vehicles as well as continued overseas expansion. Profit per car, excluding the impact of the company’s electronics unit, rose as much as 46% versus the previous quarter, according to JPMorgan Chase & Co. What particularly surprised industry observers is that BYD seems to be making more money per vehicle, despite price competition. Tesla’s Slowing Growth Is Sending a Warning to All EV MakersīYD sold a record total of 822,094 vehicles in the latest quarter, including hybrids, helping to cement its lead as China’s best-selling car brand. ![]() “It also has growing exposure to hybrids, which have been gaining market share in China and contribute to higher margins.” ![]() “BYD still looks like the safest bet versus Tesla in the short term given its discipline in terms of balancing volume growth with profitability,” said Kevin Net, head of Asian equities at Tocqueville Finance. ![]() Analysts have been lowering their earnings-per-share estimates for the US maker at the same time the outlook for BYD has been rising. Tesla’s results are also suffering from the months-long price war that it had initiated in an attempt to fuel demand. Musk cast a pall over the global EV sector with a grim outlook earlier this month, saying rising interest rates in the US have hurt its sales. The company will report its third-quarter earnings after Monday’s close.īYD Shares Jump on China EV Maker’s Record Quarterly Profit BYD posted all-time high sales despite intensifying competition and a broader slowdown in sales of China’s new-energy cars. Traders have snapped up bullish options on BYD, while analysts have raised their earnings projections for the Chinese company to a record high since its preliminary quarterly report this month. While shares of Elon Musk’s firm are still up by more than double the rise in BYD this year, signs are pointing to further gains for the latter. Shares of the Hong Kong-listed Chinese electric-vehicle firm are up 1.7% this month, outperforming Tesla’s 17% plunge and declines in other peers as well. as the world’s biggest seller of pure electric vehicles, with surging profits underscoring its sales clout despite intensifying competition at home.
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