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Competition in the electric vehicle industry is fierce, with investor favorite Tesla competing against a number of Chinese rivals. But Jason Hsu, chairman and chief investment officer of Rayliant Global Advisors, believes one stock will lead the way. That company was Hong Kong-listed BYD, which he declared “the next Toyota.” “I think BYD [is] Indeed, it is something of a low-cost leader in terms of scale, production, technology, and maturity. Su told CNBC’s “Street Signs Asia” that he believes BYD “will definitely be a winner” as the EV market consolidates. “You can easily see BYD going to double its current price,” he said. BYD took over Tesla’s title as the world’s top EV maker in the fourth quarter and surpassed Tesla’s production for the second year in a row in 2023, according to January data. “After dominating China’s domestic market, it has aggressively expanded overseas. Like Tesla, in order to maintain its competitiveness, it not only sells cars but also makes batteries and other parts in-house. “Competition in China’s electric vehicle market will intensify over the next two to three years.” BYD said last week that one potential curveball for China’s EV market is the US’ decision to increase tariffs. Although this is reportedly under discussion, Su said he believes the market has already priced in the possibility of higher tariffs being imposed. . He also noted that Toyota has experienced similar challenges building share in the U.S. and European markets, and said he feels BYD can “find its own way” as well. Analysts covering the stock see an 81.1% upside potential from their average price target, and 94% rate it a buy, according to FactSet. For global investors who wish to purchase BYD, BYD shares are listed on the Hong Kong Exchange. Alternatively, you can purchase through an ETF. BYD owns 7.9% of the KraneShares MSCI China Clean Technology Index ETF and 7.3% of the CoreValues Alpha Greater China Growth ETF. — CNBC’s Tanvir Gill and Evelyn Cheng contributed to this report.
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