BYD’s revenue in the third quarter of this year exceeded the level of 25.2 billion dollars and reached 28.2 billion dollars. Tesla’s last week. The Warren Buffet-backed company sold 1.1 million vehicles in the third quarter; This is a record figure for BYD.
However, the 24% increase in revenues occurred despite profitability falling from 22.1% last year to 21.9% this year.
The price war in China is affecting the profitability of both domestic and international companies. Volkswagen announced that its investments in China will approach the pessimistic side of the forecasts, and that it will generate revenue of 1.6 billion euros this year, compared to the optimistic scenario of 2 billion euros.
However, BYD’s 21.9% profit margin is well above Tesla’s 17% profit margin and Chinese rivals Zeekr and Xpeng’s 14.2% and 6.4% profit margins.
“Although BYD has increased its presence internationally, the expansion brings with it a multitude of unknowns, such as the complexity of local markets, regulatory changes, as well as geopolitical risks,” Goldman Sachs analysts said.
(source: AFP)
