Opinions
Michael Hakes - CFA, MBA
BYD Company
BYDDY-OTC
DON'T BUY
Aug 02, 2024
Stock price when the opinion was issued
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It is the largest EV producer, including hybrids, in the world and is based in China. It is also the second largest maker of batteries for EV's. It is more vertically integrated than its peers and can make all the components themselves including semi-conductors, so it can control its costs and production lines. They produce a high quality vehicle for $11000. The U.S. and Canada have put a 100% tariff on their cars but many other countries that don't have domestic auto industries to protect can welcome them which leads to global expansion. Buy 32 Hold 4 Sell 0
(Analysts’ price target is $44.45)Avoid Chinese stocks, they're buyer beware. They don't have the rule of law there, and the Chinese government gets involved and upends things at will. Better places to look.
As a car company, changing the auto industry. Makes a very cheap electric car that's taken China by storm and will compete here. Not sure it'll be sold in NA anytime soon.
He has no auto exposure right now. He spoke with an analyst a year ago on the topic of Chinese EVs; he said at the time that the game is over, they've won. When you want to do something correctly in manufacturing and be the best, ideally you want all the components (design, manufacturing) together geographically.
Offers low-cost solutions, and consumers would jump on them if given the chance. But what's that going to do to European and US auto sectors? Confident that it's leading in EVs, though can't recommend either Buy or Sell.
Low-cost provider, and that will be key. Leader in China, but the market's been tough. Lots of rhetoric around tariffs, so lots of uncertainty about its ability to export to other markets. Be cautious.
Off his radar. He owns BMW instead, and follows TSLA.