WEBULL

Does BYD’s 2025 EV Sales Crown Over Tesla Change The Bull Case For BYD (SEHK:1211)?

Simply Wall St · 3d ago
  • BYD Company Limited recently reported unaudited 2025 figures showing full-year production of 4,537,356 vehicles and sales of 4,602,436 vehicles, alongside weaker December volumes compared with a year earlier.
  • These results confirm BYD sold around 2.3 million all-electric cars in 2025, surpassing Tesla and becoming the world’s largest pure EV seller.
  • Next, we’ll assess how BYD’s emergence as the top all-electric vehicle seller globally influences the company’s broader investment narrative.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

What Is BYD's Investment Narrative?

To own BYD today, you need to believe it can turn its scale in electric vehicles, batteries and vertically integrated manufacturing into durable, profitable market share across China and key export regions. The latest production and sales update confirms that scale: over 4.6 million vehicles sold in 2025 and around 2.3 million pure EVs, enough to overtake Tesla in all‑electric volumes. That milestone may strengthen the long‑term story, but the weaker December numbers highlight the near‑term tension between growth, pricing and margins at a time when the shares already trade on a higher earnings multiple than many peers and have lagged both the Hong Kong market and auto sector over the past year. For now, the EV crown looks more like a credibility boost than a catalyst that radically changes the risk‑reward profile.

However, BYD’s premium valuation and thinner margins are pressures investors should be watching closely. Despite retreating, BYD's shares might still be trading 15% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

SEHK:1211 1-Year Stock Price Chart
SEHK:1211 1-Year Stock Price Chart
Twenty five Simply Wall St Community fair value estimates span roughly HK$113 to a very large HK$449, underlining how far apart individual views can be. Set against BYD’s new status as the largest pure EV seller and recent softness in monthly volumes, this spread shows why it can be helpful to compare several competing perspectives before deciding how the story fits in your own portfolio.

Explore 25 other fair value estimates on BYD - why the stock might be worth just HK$113.07!

Build Your Own BYD Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your BYD research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free BYD research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BYD's overall financial health at a glance.

Ready To Venture Into Other Investment Styles?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.