Warren Buffett’s firm added to its BYD Co (HKG:1211) position over the third quarter, bringing its holding in the Chinese EV maker to 11.1 million shares, which now account for around 7% of the company’s outstanding stock. BYD’s stock popped more than 5% Thursday after it reported fiscal 2017 second-quarter earnings that beat analysts’ estimates and increased its guidance for the year. We are on track to achieve our financial targets this year, Chairman Wang Chuanfu said in a statement today.
The stock of Chinese automaker BYD increased on Tuesday as the business predicted a dramatic increase in third-quarter profits.
The Warren Buffett-backed company reported late Monday that its projected net profit for the three months ending on September 30 is between 5.5 billion and 5.9 billion yuan ($764.5 million and $820 million), up between 333.6% and 365.11% from the same time last year.
In afternoon trade, BYD’s shares, which are traded in Hong Kong, increased 5.6%.
“In the third quarter of 2022, new energy vehicle industry continued to accelerate its growth trajectory despite the difficult and harsh economic condition, the spread of the pandemic, extreme high temperature weather, high commodity costs, and other negative aspects,” BYD stated in a statement.
Sales of the company’s new energy vehicles, which include electric cars, “continued to reach record highs,” increasing market share and “driving significant improvement in earnings” while “effectively relieving the pressure on earnings brought on by the rising prices of upstream raw materials,” according to the company.
Many electric vehicle manufacturers, like Tesla and BYD, have been struggling with the escalating cost of raw materials like lithium, which are essential to batteries.
BYD outsold Tesla, which had delivered just over 900,000 new energy cars from the beginning of the year to the end of September, with 1.18 million sales.
In China, the largest market for electric cars in the world, BYD’s numerous models are among the best-selling new energy vehicles.
The corporation with its headquarters in Shenzhen has been rather durable in the face of challenges like a revival of Covid in China and a weakening economy, but its smaller competitors have struggled
Chinese electric vehicle startup Xpeng posted mediocre third-quarter vehicle delivery projections in August.