The Chinese Nightmare: Tesla Vs. BYD – Maintaining Both With A Buy

Summary:

• I’m pitching China against the U.S. on the EV front comparing BYD versus Tesla.
• I’m bullish on both, but prefer BYD for the near term as I consider it to have better footing heading out of 2024 considering sales and margins.
• BYD’s October sales hit a record, and its Q4 is typically strong, suggesting it may surpass Tesla in BEV sales in the near term and regain its position as King.
• Tesla’s stock also surged post earnings and on Musk’s ties with Trump, making for more limited near-term upside, while BYD offers more near term upside potential as it consolidates Chinese-BEV demand.
• I hereon share my positive sentiment on BYD and Tesla and how I see EV/BEV demand playing out in the near-term.

Investment thesis

The BYD (OTCPK:BYDDF) vs. Tesla (NASDAQ:TSLA) war has officially begun, though it’s been going on longer than the market knows. BYD reported 3Q24 earnings late last month, and everyone and their grandmother reported

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