BYD net profit up 410% y-o-y, but down 44% on previous quarter
When reporting BYD profitability, YoY and QoQ should be reporting. Ignoring any one is not giving a balanced view and become bias.
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BYD on Thursday reported strong revenue growth in its first quarter, with net profit up 410% from last year despite concerns about slowing demand following a Covid-hit 2022. The EV giant’s profit growth is slowing, however, and was down 43.5% from the previous quarter due to an ongoing national price war and a rush of purchases before subsidies were ended late last year.
Why it matters: BYD’s figures reflected a broader trend of growing competition and shrinking profits for automakers in China, as car brands were hit by the phasing-out of electric vehicle subsidies and a price war started by Tesla’s price cuts. BYD continues to lead the sector however, with a 35% share of the country’s electric vehicle market.
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骨神 : What got to do with tesla. Don’t post here
ZnWC OP 骨神 : BYD is Tesla's competitor. Profit QoQ down is caused by Tesla price cutting.
骨神 ZnWC OP : Yes. So pls post in BYD, no need to tell us here
TeslaSmurf 骨神 : It has a lot to do with it because Tesla forced all the “competitors” to lower consistently their prices. Tesla is the only one that can really afford that strategy keeping a consistent margin. The move will determine many to slow down the EV shift in their line-up while Tesla needs 1,5 years to be mass producing the new compact car in Mexico. Then… if they succeed by the same time to get to the top of the US truck market with the Cybertruck, it’s game over. So, it’s all about Tesla willing to increase the production even in a negative market, with the purpose to mantain the scheduled growth to reach the 20 million cars by the end of the decade.
ZnWC OP 骨神 : It has a lot to do with Tesla. It shows that Tesla price cutting marketing strategy works - increase demand and reduce competitor's profit. This is positive news to Tesla.
ZnWC OP TeslaSmurf : Thanks for the input