What You Need To Know
BYD Co., China’s leading automaker, aims for nearly half of its future sales to come from international markets. With a target of 500,000 overseas sales this year and plans to sell 3.6 million electric cars by 2024, BYD is heavily investing in production facilities worldwide.
To overcome trade barriers, BYD is expanding its operations in Europe, Asia, and South America. Despite facing tariffs in the EU, Canada, and the US, BYD is strategically growing its presence by establishing factories in various countries.
The automaker's collaboration with Uber for 100,000 EVs and sponsorships of global sporting events reflect its push for brand recognition beyond China. While the 50% global sales goal may be achieved by 2030, BYD continues to dominate the Chinese market and is enhancing data security for its advanced vehicle technologies.
Why This Is Important for Retail Investors
Diversification: BYD's expansion into international markets offers retail investors a chance to diversify their investment portfolios beyond domestic stocks and sectors.
Growth Potential: BYD's aggressive sales targets and investments indicate potential growth opportunities, which can be attractive for retail investors seeking high-growth investments.
Exposure to EV Market: BYD's focus on electric vehicles presents retail investors with exposure to the rapidly growing EV market, allowing them to capitalize on this trend.
Risk Mitigation: Investing in a company like BYD, with a strong foothold in multiple markets, can help retail investors mitigate risks associated with localized economic or regulatory challenges.
Innovation and Technology: BYD's advancements in autonomous and internet-connected cars highlight its commitment to innovation.
Spot the Investment Opportunity Enabling EV Growth
Rising demand for EVs equals rising demand for critical minerals. Among these, one mineral is especially prevalent in making the advanced rechargeable batteries and fuel cells needed to ensure EVs make it from the production line to the road.
Although this critical mineral exists in the US, we are currently not producing it and remain entirely dependent on imports.
It’s increasingly obvious that we need to bring the production of critical minerals back to US shores. To control costs, progress in tech, and enhance national security.
Read What Others Are Saying
Bloomberg: China’s BYD Aims to Get Half of Auto Sales From Global Markets