BYD Stock Vs. Tesla Stock

Tesla (TSLA) and BYD Co. (BYDDF) are both fast-growing EV giants as they are setting the pace.

Both have huge expansion plans. Tesla Berlin is about to begin deliveries with Tesla Austin also gearing up. BYD is opening multiple plants this year and launching several new models and expanding into new export markets.

Tesla Vs. BYD Sales:

Tesla sold 59,845 Shanghai-made vehicles in January, up 286.5% vs. a year earlier. The figures were released on Feb. 14 as part of industry data on EV and overall auto sales. Tesla exported 40,499 EVs, mostly to Europe, while 19,346 were sold locally. Tesla exports the bulk of its Shanghai-made vehicles in the first half of a quarter, then focuses on local sales.

BYD sold 88,283 new energy vehicles in February, up 753% vs. a year earlier. That's modestly lower than January's 93,168 NEVs and December's 93,945. In February, the China New Year and Beijing Olympics slowed EV and auto sales generally, while the 30% subsidy cut on Jan. 1 affected many rivals' January sales significantly.

Hybrid sales have surged thanks to a new, fuel-efficient DM-i system that provides substantial battery range.

BYD is expected to show strong sequential gains in the coming months. BYD says new Covid lockdowns in Shenzhen will have a slight impact on production. Tesla closed its Shanghai plant for two days for Covid-related reasons this past week. BYD EV and hybrid sales combined are nearly equal to Tesla's all-electric deliveries.

Tesla Vs. BYD Expansion:

Tesla, targeting the luxury and affordable luxury markets, has far-higher selling prices than BYD. Average selling prices have come down, as the vast majority of its vehicles are now Model 3 and Y vehicles vs. the Model S and X. But Tesla has raised prices several times in the past year, especially in the U.S.

BYD also has the benefit of lower-cost China production, but its ASPs are much lower, with the majority of its EVs and hybrids selling for between for $15,000-$34,000, though some vehicles top $40,000

The China EV giant does plan to move upscale, competing more directly with Tesla as well as Nio, Xpeng and Li Auto. It reportedly will unveil a high-end brand in the first half of 2022, starting with a large crossover SUV.

BYD will increase its stake in its Danza joint venture with Daimler to 90% from 50%. Danza, which is not a big auto operation, could be another avenue for BYD to move upscale.

Tesla Stock Vs. BYD Stock: EV Markets

BYD's auto plants are in China, with virtually all its sales there. BYD easily tops Tesla in local China sales for EVs alone.

The upside is that BYD has a lot of markets to expand into. In late 2021 it began selling the Tang SUV in Norway, giving it a foothold for a much-larger expansion across Europe.

BYD's low-to-moderate-priced vehicles could serve rich and developing nations, while Tesla's current and planned vehicles are clearly aimed at affluent customers in rich nations. But America isn't in BYD's sights for now. Tariffs on China-made autos make exports to the U.S. cost prohibitive.

Tesla Vs. BYD Batteries:

The BYD Blade batteries have good range and are seen as among the safest available for EVs. They also keep their charge well in cold weather, a big selling point for northern Europe.

BYD sells its batteries to other automakers, which could be a growing business in 2022 and beyond. The made-in-China Ford Mustang Mach-E, just starting deliveries, uses BYD batteries.

Tesla currently uses CATL batteries in its China-made models, but may be looking for additional batteries and suppliers. Tesla also has said it'll use LFP batteries more frequently in the U.S. and Europe. BYD has a battery factory in the U.S.

I personally feel that BYD is a good potential growth stock and it accounts 18% of the Chinese plug-in vehicle market. As a top EV player in a fast-growing Chinese market, BYD has a long growth runway. Its scale and manufacturing expertise give it an edge over relatively newer entrants in the Chinese EV market.

BYD's growth looks impressive and attractive compared to some of the newer entrants. Moreover, Plus, BYD has been generating profits for years. I would recommend BYD stock as compared to Tesla stock as it is cheaper to get in now with so much potential growth near future.

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