(Bloomberg) – Chinese automaker BYD overtook Tesla Inc. to become the world’s top seller of electric vehicles, even as deep year-end discounts aimed at meeting 2023 sales targets hurt profits. As a result, BYD’s stock price fell.
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The EV giant’s Hong Kong-listed shares fell as much as 4% in early Hong Kong trading on Tuesday after the company announced a preliminary 2023 net profit of 29 billion yuan ($4 billion) to 31 billion yuan. did. Although this was a record high, it fell short of the 31.5 billion yuan expected by analysts.
Record deliveries in the fourth quarter did not translate into further significant gains. Net profit for the fourth quarter is expected to be 7.2 billion yuan to 9.2 billion yuan, down from 10.9 billion yuan in the previous quarter, according to Bloomberg calculations.
BYD stock has fallen 16% this year.
Like other EV makers, BYD is facing price competition in China, the world’s largest car market. In November, the Shenzhen-based automaker cut prices of its popular Qin, Han and Tang models by up to 10,000 yuan as it slightly exceeds its annual delivery target of 3 million units.
Geopolitical tensions are also taking their toll. BYD is one of three automakers selected for further scrutiny in the European Commission’s anti-subsidy investigation to determine whether state aid from the Chinese government gives manufacturers an unfair advantage. There is one company.
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