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Globe and Mail
26-05-2025
- Automotive
- Globe and Mail
Citi Lifts BYD's Price Target on Robust Export Prospects
Shares of Chinese electric vehicle maker BYD & Co. (BYDDF) (HK:1211) hit a new 52-week high on the Hong Kong Stock Exchange during mid-day trading today, before ending the day up 4.1%. Citi analyst Jeff Chung lifted the price target on BYD's Hong Kong shares to HK$727 (57.2% upside) from HK$688, while maintaining a Buy rating. The analyst believes BYD is best positioned for growth from robust exports, backed by several catalysts. Confident Investing Starts Here: Here's Why Citi Is Bullish About BYD's Exports Chung cited the trend in China's passenger car exports in April 2025, which displayed that consumers largely preferred BYD automobiles over those of its peers. He also mentioned that in the first four months of 2025, BYD's export market share shot up to 38% from 23% compared to the same period last year. Additionally, BYD's plug-in hybrid EVs are seeing strong export demand, which the market has yet to fully account for in the consensus estimates. Notably, BYD plans to sell at least 50% of its autos outside China by 2030. Chung believes the company is on track to achieve this goal, backed by strong export demand. He added that BYD is making significant inroads into large international markets, including India, Southeast Asia, and parts of Europe. BYD is setting up manufacturing plants in Hungary and Turkey, further cementing its position in the European market. Interestingly, BYD is already outpacing its largest EV competitor, Tesla (TSLA), both in the domestic Chinese market and globally. Plus, the company faces little risk from U.S. tariffs, since it is still not allowed to export to the American market. Moreover, Chung believes BYD stands to benefit from any future competitive price cuts, given its massive economies of scale and geographical sales mix. The analyst views all these factors as major drivers for BYD's export growth. Is BYD Stock a Buy? Analysts remain highly bullish about BYD's long-term stock trajectory. Based on 12 unanimous Buy ratings, BYD stock commands a Strong Buy consensus rating on TipRanks. Also, the average BYD price target of $65.77 implies 14.9% upside potential from current levels. Year-to-date, BYD stock has gained 68.4%. See more BYD analyst ratings Disclaimer & Disclosure Report an Issue
CNBC
26-05-2025
- Automotive
- CNBC
Xiaomi takes aim at Tesla's bestselling car in China with its longer-range YU7
BEIJING — China's Xiaomi, known for its smartphones, only recently entered the electric-vehicle space. It is now taking aim at Tesla's bestselling car in China. Less than a year after launching its first electric car, Xiaomi late on Thursday revealed its YU7 SUV and claimed it would have a driving range of at least 760 kilometers (472 miles) on a single charge. That's well above the 719 km advertised for Tesla's extended-range Model Y. Driving range has been a selling point for consumers worried about frequent battery charging. "We expect Yu7 would significantly erode Tesla Model-Y's China market share," Citi analyst Jeff Chung said in a report Sunday. Citi expects the YU7 to be priced around 250,000 yuan to 320,000 yuan ($34,700 to $44,420), and forecasts monthly sales of about 30,000 units. Once sales pick up, Citi predicts annual sales of 300,000 to 360,000 units. That price range pits the YU7 against Tesla's Model Y, which starts at 263,500 yuan in China. Xiaomi plans to announce the YU7's price at the car's official launch in July. Xiaomi plans to announce the YU7's price at the car's official launch in July. Tesla's Model Y was the second most sold new energy vehicle in China in the six months through April, according to Autohome, an online platform for consumer information on cars in China. BYD's far cheaper Seagull ranked first, while the budget Wuling Hongguang Mini ranked third. For April alone, Geely's Geome Xingyuan topped the new energy vehicle bestsellers' list, followed by BYD's Seagull and the Wuling Hongguan Mini, Autohome data showed. Xiaomi's SU7 sedan ranked fourth, followed by three BYD models, while Tesla's Model Y ranked eighth. The YU7 is positioned as a "luxury SUV" and its sales could outperform that of the SU7, Elinor Leung, managing director of Asia telecom and internet research at CLSA, said in a note. Last year, Xiaomi released its first electric car, the SU7 sedan, priced $4,000 lower than Tesla's Model 3 at the time. Tesla subsequently reduced Model 3 price to 235,500 yuan as of May 26 — although it is still more expensive than the SU7 sedan at 215,900 yuan. Xiaomi delivered more than 28,000 units of its SU7 car in April, down from its record of more than 29,000 during the previous month. That comes after the crash of an SU7 vehicle in China that left three people dead. China has since mandated automakers to be careful with the language when advertising driver-assist systems. Xiaomi revealed the YU7 on Thursday at the end of a launch event for a premium phone using a new chip that the company claimed beat Apple's on certain metrics. CNBC was not able to independently verify the claims. Rival electric car company Xpeng is due Wednesday to release the Max version of its relatively popular Mona M03 car. The Max version includes more advanced driver-assist capabilities. The company previously said the Max would begin deliveries after the Lunar New Year holiday in February.
Mint
26-05-2025
- Automotive
- Mint
Tesla has another problem in China. This time it's a smartphone maker.
Tesla faces more electric vehicle competition in China as its sales growth stalls. It could really use a new model right about now. Chinese consumer electronics maker Xiaomi launched its YU7 electric vehicle over the weekend. It's an impressive crossover-sized all-electric car targeting Tesla's best-selling Model Y. 'We expect Yu7 would significantly erode Tesla Model Y's China market share," wrote Citi analyst auto analyst Jeff Chung in a Sunday report. He projects Yu7 annual sales, after ramping up, at 300,000 to 360,000 'considering its outstanding tech features and value-for-money." Tesla doesn't break out sales by model in China. It sold about 660,000 cars in China in 2024 and 1.8 million globally. YU7 trims will be priced from about $35,000 to $45,000. The Model Y in China ranges from about $37,000 to $44,000. The Y standard per-charge range comes in at about 360 miles per charge, about 100 miles less than the YU7. The timing of a new competitive launch isn't optimal for Tesla. Global sales fell 13% in the first quarter from a year ago, hurt by the Model Y update, which reduced production, and hurt by Elon Musk's political activities that Tesla characterized as brand challenges during its first-quarter earnings conference call. Tesla's sales in China were roughly flat in the first quarter, but the U.S.-Chinese trade war hurt results in the second quarter, with Chinese new car buyers avoiding American products, according to Wall Street analysts. Through the first seven weeks of the Q2, Tesla sales were down about 25% from a year ago, according to registration data tracked by Chung. Up until the second quarter, Tesla's market share of the Chinese battery-electric vehicle market has been relatively stable for the past few years, at just below 10%. That's been an impressive feat considering that Tesla doesn't have a lower-priced car that accounts for some 40% of the Chinese BEV market. Market share, however, is starting to slip amid new competition. One thing that could help would be a new model. Tesla plans to launch a lower-priced vehicle in a matter of weeks, but investors haven't seen it yet. Future Fund Active ETF co-founder Gary Black worries that it will be a cheaper version of the Model 3 or Model Y. Lower priced versions of existing models could make it tougher to address the different segments of the Chinese car market. None of that seems to bother investors, though; coming into the week of trading, Tesla stock was up 43% since the company's late-April earnings report. Investors aren't really thinking about car sales right now. They are focused on AI and self-driving cars. Tesla plans to start a robotaxi service in Austin, Texas, in June. Investors believe that can unlock a new wave of growth for the auto maker. Wedbush analyst Dan Ives called it the 'golden age of autonomous growth" in a Friday report. He raised his price target for Tesla stock to $500 from $350. He rates the shares a Buy. Write to Al Root at
Business Times
23-05-2025
- Automotive
- Business Times
Analysts bullish on BYD as it overtakes Tesla, edge out other Chinese electric vehicle players
[SINGAPORE] Analysts are getting bullish on BYD as the Chinese automaker's soaring exports, rising global presence and cost competitiveness signal favourable tailwinds. In a Friday (May 16) research note, UOB Kay Hian (UOBKH) named BYD as a top buy and assigned it a 510 yuan target price. Morgan Stanley on Wednesday added BYD to its Global Emerging Market and Asia Pacific ex Japan Focus lists. Citi in a Wednesday note raised its target price for the counter to 669 yuan, with a 'buy' rating. This comes as the automaker logged a surge in exports for 2025, particularly in Europe, where it outsold Elon Musk's Tesla in sales in the continent for the first time. BYD registered 7,231 new-battery electric vehicles (EV) in April, a 169 per cent year-on-year surge that launched it into the top 10 brands by EV sales, while the American automaker moved one spot lower as its registrations dived 49 per cent. 'We think (BYD's) valuation is attractive at 18.3 times 2026 estimates for price-to-earnings ratio with 22 per cent return on equity,' said Morgan Stanley. On track for export growth target, strong 4M 2025 performance: Citi Based on the first four months of 2025, China's passenger vehicle export pattern has turned 'even more favourable towards BYD', Citi analysts Jeff Chung, Kyle Wu and Betty Li said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up They pointed out that BYD's battery EV export market share 'accelerated significantly' from 23 per cent in FY2024 to 38 per cent for the first four months of FY2025. 'From the year-to-date trend for 2025, we expect (that for) 2025/2026, plugin-hybrid vehicles (PHEV) China exports… should grow at 236 per cent/100 per cent year on year,' they said. During the first four months, the Chinese automaker's exports grew across its Europe, Oceania, South-east Asia and Latin America markets, as Europe exports led growth and surged 385 per cent year on year. Given its performance for the four-month period, Citi analysts think BYD is 'on track' to hitting its 2025 export volume target of around one million exports, which 'remains achievable'. 'We expect BYD new energy vehicle 2025/2026 sales volumes of 5.75 million/7.2 million units on high-end brand sales growth, much better demand/supply relationship within the PHEV sector, wider average selling price positioning within the battery EV segment penetrating both the lower-end and higher-end segments going forward, and decent export sales growth.' Rising global presence, outselling Tesla With strong April 2025 sales, BYD is rapidly overtaking Tesla in Europe, said UOBKH analysts Ken Lee and Bella Lu. The Chinese carmaker outsold Tesla at ratios of 2:1 in Germany and 5:1 in the UK, and became the top EV brand in Italy with a 11.5 per cent market share. 'As Tesla's European sales slide and BYD expands aggressively, the competitive gap continues to widen,' they said. Morgan Stanley similarly highlighted BYD's 'increasing global presence'. Beyond overseas competition, the automaker has advantages over domestic peers – other Chinese EV players – given its vertically integrated supply chain and growing scale, said Tim Hsiao, auto analyst for China at Morgan Stanley. Better tech, lower costs BYD models such as Atto 3, Seal, and Song Plus DM-i are winning over European buyers with lower costs and superior technology, said UOBKH, while Morgan Stanley favours the automaker for its 'rapid EV product innovation'. BYD's 'localised strategy', with more than 120 stores, a Hungary plant set to open in 2026 as well as a balanced EV/PHEV lineup, contrasts with Tesla's premium pricing and limited model range, UOBKH noted. Likewise, Morgan Stanley's Hsiao pointed out that the automaker outdoes other Chinese EV players given its greater cost competitiveness and bargaining power with supply chains.
Yahoo
30-04-2025
- Automotive
- Yahoo
1 Wall Street Analyst Just Put Nio Stock on "Catalyst Watch." Will Shares Double From Here?
One Wall Street analyst thinks Nio will see record quarterly sequential growth. New EV offerings could help the stock surge, according to the Citigroup analyst. Nio displayed one of its two new brands at the Shanghai Auto Show last week. Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) have soared by almost 40% since the first week of April. One Wall Street analyst thinks that's just the beginning. Not only that, Citigroup analyst Jeff Chung believes more moves higher are imminent. In a report Chung released on Sunday, the analyst placed Nio on a 30-day positive "catalyst watch," reports Barron's. Chung even thinks the stock is worth $8.10 per share, which would represent a more than 100% gain from where it traded at the time of his report. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nio delivered about 42,000 EVs in the first quarter, a more than 40% year-over-year increase. Yet Chung still sees sales growth meaningfully accelerating from here. The new optimism comes after the company showcased its newest brands, Onvo and Firefly, at the 2025 Shanghai Auto Show last week. Its flagship Onvo L90 SUV also made its debut at the show. Both sub-brands are aimed at more of a mass-market EV buyer, offering lower prices without sacrificing many of Nio's leading EV technologies. The auto show impacted Chung's opinion on the stock. He wrote, "After [the] Shanghai auto show, we expect NIO to launch new models much earlier than consensus expected." That could mean 10 new models launching by the end of 2025. The analyst envisions that leading to more than 50% sequential delivery growth in the second quarter. He believes deliveries could soar to at least 63,000 units in what would be a record quarter. Chung thinks investors should buy Nio stock now, with the stock expected to trend toward his $8.10 price target as those models launch and upcoming delivery reports show improved data. While I agree that Nio sales should grow at increasingly faster rates moving forward, the stock itself may not react immediately. Investors buying now shouldn't be expecting a short-term move that the "catalyst watch" designation might imply. In the longer term, however, as sales figures show gains, Nio stock might react as Chung expects. Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,818!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $666,416!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Citigroup is an advertising partner of Motley Fool Money. Howard Smith has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Wall Street Analyst Just Put Nio Stock on "Catalyst Watch." Will Shares Double From Here? was originally published by The Motley Fool Sign in to access your portfolio
