BYD Stock is Unstoppable

BYD stock is unstoppable. Or at least it will be for a very long time.  And the reason is simple…

While most of the world's largest automakers dragged their feet in recognizing that the auto industry was about to go through a major transition, BYD (OTCBB: BYDDY), along with most of the automakers in China embraced the future. Instead of vilifying it.

And when I speak of the future, I’m speaking about the transition from internal combustion to vehicle electrification.  A transition that began around 15 years ago.  And a transition that will become quite apparent by the end of the decade, when around 40% of all new cars sold across the globe will be electric.

To put this in perspective, back in 2015, less than 1% of all new cars sold were electric.  In 2024, 21% of global car sales were electric.  And because it bears repeating, by the end of this decade, that number will clock in at around 40%.

Meanwhile, sales of new internal combustion vehicles actually peaked in 2018.

And few automakers have taken advantage of this action better than BYD.

BYD Stock for the Win

BYD stock has enjoyed a nice run over the past 5 years, delivering gains in excess of 1,059%.

And there’s little indication that the stock will peter out anytime soon.  In fact, earlier this week, BYD announced earnings, and absolutely crushed it.  Net profit increased 73.1% in Q4 to $2.1 billion, and for FY, 2024, profit climbed 34%.  The company’s strategy of undercutting the competition on price and aggressively expanding into other markets is paying off. 

Just five years ago, BYD ranked as the 49th best selling car brand in the world.  Today, BYD is the third best selling car brand in the world. 

It should also be noted that just a couple of weeks ago, BYD announced that it had launched a $5.2 billion share sale on the Hong Kong exchange.  This transaction is Hong Kong’s biggest share sale since food-delivery firm Meituan raised $10 billion in 2021.  The market ate it up, pushing the stock up over $100 a share.

Truth is, while most of the traditional car makers have still been unable to find success selling EVs, not only has BYD enjoyed tremendous success, but it’s been actively expanding its footprint, too.

In the U.S., the three top-selling car companies have yet to fully benefit from the transition to electric vehicles.  These are Toyota (NYSE: TM), Ford (NYSE: F), and GM (NYSE: GM).  And they sure as hell have had no success selling these cars overseas.

This isn’t to say that Ford and GM haven’t been able to build decent electric cars.  But on price, and even on quality, they can’t compete with the likes of BYD.  And make no mistake: the race to catch up to BYD gets harder and harder every day.

We got a not-so-gentle reminder of this last week, after BYD announced that it would be unveiling its new ultra-fast charging technology.  It’s a game-changer, to be sure.  Word is, it delivers twice the charging power of Tesla’s latest supercharger, offering a full charge in as little as 10 minutes.  

There are some analysts suggesting that this new charging technology will allow EVs to be charged as fast as traditional internal combustion vehicles can be refueled.  This is a bit of a stretch.  I do drive an EV, but when I had an internal combustion vehicle, it never took ten minutes to refuel.  

That being said, just five years ago, the fastest charge times we were seeing clocked in at around 30 minutes.  If BYD can go from 30 minutes to 10 minutes in just five years, I have no doubt that “refueling times” will reach parity with internal combustion vehicles before the end of the decade.  And this technology will be Chinese technology, not American.

This is actually pretty important as one of the last remaining hurdles to EV adoption in the U.S. is refueling times.  If an EV owner can charge his or her car in the same time it takes to put gas in an internal combustion vehicle, American car buyers will be less resistant to making the change to electric.  

I predict that before the end of the decade, such technology will not only exist, but will be fully deployed in the marketplace. 

Of course, that marketplace may not include the U.S. market as both the Biden administration and the Trump administration have essentially banned Chinese-made EVs from the U.S. market.  They’ve successfully done this with a 100% tariff on such vehicles.  Such a thing makes it impossible for Chinese EV companies to enter this market.  And this is the second biggest vehicle market in the world. 

But this hasn’t stopped BYD from expanding its footprint in other parts of the world.  Some of its biggest markets outside of China include…

• Thailand
• Latin America
• Australia
• Brazil
• Mexico

The company is also starting to gain ground in emerging markets in Europe.  

Meanwhile, we have a president who constantly shits on electric cars, unless they're built by Tesla.  We have a large population of people who still think EVs are only a fad for wealthy eccentrics and overzealous treehuggers.  And really, we have no American car makers that can compete on price with China’s biggest EV makers.

Understand, I take no joy in writing this.  In fact, it makes me nuts to think about how easily the U.S. could’ve dominated the EV market had we not mocked it when Uncle Elon first came on the scene with the first legitimate, highway-capable electric car. 

Instead of seizing the opportunity to dominate the future of auto manufacturing, we ignored it.  We criticized it.  We put our heads in the sand, let partisan pundits convince us that these EVs were a joke, and even watched journalists attempt to sabotage the early days of the market by reporting complete falsehoods about Tesla and GM.  

It’s a shame, really.  But I’m not here to cry over spilled milk.  I’m simply looking for an opportunity to make a buck.  And when it comes to the EV market, the big money continues to be in the materials required to manufacture EV batteries.

I’m talking about things like lithium, cobalt, and nickel.  

Interestingly, even more important than those materials, are the companies that process this stuff.  Truth is, there are only a handful of these companies.  And make no mistake: they’re making boatloads of cash.

My favorite materials processing company right now is this one that has developed a new technology that can process lithium 30 times faster than traditional methods.

This technology is so advanced, that GM recently ponied up $650 million just to lock in a 10-year supply agreement with the company that pioneered this technology.  Indeed, this is one of those rare, under-the-radar opportunities that’ll rival some of the biggest EV plays we’ve ever seen.  Including BYD stock.

This is why our research team here at Energy & Capital just put together this short report on this particular company, which includes details on how the technology works, why it’s so important, and of course, access to the stock’s name and ticker.  You can download it for free, right here.