BYD shares slip as Tesla rival says profits surge but lag estimates

Published: Jan. 30, 2024 at 4:44 a.m. ET

By

Steve Goldstein

Newly launched BYD Atto 3 is displayed during the launch of the Chinese-made BYD brand in Jakarta, on January 18, 2024. BYD said its profit for 2023 would rise as much as 86%.
Agence France-Presse/Getty Image

1211

-1.43%

BRK.B

+0.70%

TSLA

+0.84%

BYD shares slumped 4% in Hong Kong on Tuesday, as the electric car maker said its earnings for the year would surge but lag analyst estimates.

BYD 1211, -1.43% said its earnings would rise between 74% and 86% above last year’s 16.62 billion renminbi. But the top end of that guidance range, 31 billion renminbi ($4.4 billion), lagged the Visible Alpha-compiled analyst estimate of 31.23 billion renminbi.

BYD did not provide any revenue figures. BYD, in which Warren Buffett’s Berkshire Hathaway BRK.B, +0.70% has about an 8% stake, previously reported record sales volume of 3.02 million vehicles, or 62% growth.

“Despite the increasingly fierce competition in the industry, the company achieved significant improvement in profitability and demonstrated strong resilience by virtue of the continuous improvement in brand power, rapid growth in overseas sales volume, continuously expanding scale advantage and strong cost control capability in industrial chain,” the company said in a statement.

Tesla TSLA, +0.84% is far more profitable, earning $15 billion last year, despite selling 1.8 million vehicles.

BYD shares have skidded 17% this year, though Tesla stock has done worse, falling 23%.

Autos and related products accounted for about 80% of BYD’s first-half revenue, with its mobile phone businesses accounting for most of the rest.

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Steve Goldstein

Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.