BYD's Electric Vehicle Sales Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Sales Milestone: BYD transformed into a fully electric vehicle manufacturer in 2022, quickly rising to become the world's top EV seller with 4.6 million vehicles sold last year, surpassing Ford and ranking as the sixth-largest automaker globally.
- Leading Growth Rate: With a 7.7% increase in global sales last year, BYD outpaced all automakers ranked ahead of it, demonstrating strong competitiveness and ongoing expansion potential in the market.
- Innovation-Driven Demand: The introduction of BYD's Blade Battery 2.0 and Flash Charging technologies in March has led to a surge in orders, with some vehicle models exceeding 100,000 orders, highlighting the direct impact of technological advancements on sales.
- Vertical Integration Advantage: BYD manufactures nearly all components in-house, including batteries and electric motors, which not only reduces costs but also enhances profitability, giving it a unique competitive edge in the electric vehicle market.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.960
Low
11.00
Averages
13.65
High
16.00
Current: 13.960
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. The Company's segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Decline: The sales of Ford's F-Series declined by 13% in May and are down 15% year-to-date, with inventory dropping to approximately 183,900 units at the end of May, a 16% decrease from the previous year, posing challenges to the company's profitability.
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See More
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- Increased Incentive Spending: Automakers allocated approximately 14% of an EV's ATP to incentives, equating to about $7,600 per vehicle, which is double the industry average and may pressure profit margins, warranting close investor scrutiny.
- Ford's Strategic Shift: Ford plans to launch a new midsize EV platform in 2027, and despite a 58% decline in EV sales year-to-date, the rebound in market demand offers hope for future profitability, highlighting the company's potential in the EV sector.
See More
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- Market Potential Analysis: With 221.1 million F1 fans in China and BYD being the world's largest EV maker, a successful entry into F1 could greatly aid its international market expansion.
- Sponsorship Strategy Advantage: By sponsoring a midfield or back-of-the-pack team, BYD could participate in F1 at a lower cost, avoiding hefty infrastructure investments and technical compliance requirements, thus reducing risk while increasing brand visibility.
- Competition and Challenges: While sponsorship may be a lower-risk option, BYD's status as an OEM could conflict with existing F1 auto manufacturers, potentially affecting its brand positioning and technical showcase in the sport.
See More
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- Stock Price Fluctuation: Following the announcement of the new business, Ford's stock price surged above $17 but has since retreated to around $14, indicating mixed short-term market reactions that investors should consider carefully.
- Growing Market Demand: As the construction of new data centers accelerates, the demand for battery storage is skyrocketing, with Ford planning to produce at least 20 gigawatts of battery storage capacity annually to capitalize on this trend.
- Long-Term Investment Opportunity: While Ford Energy may not deliver immediate profits, Cramer believes that it will make Ford a more attractive investment in the long run, especially as oil prices and interest rates are expected to decline.
See More
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- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
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- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
See More
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- Warranty Cost Comparison: Stellantis's warranty expenses accounted for 4.4% of total revenue, well above the historical industry norm of 2% to 3%, which not only impacts profitability but also reflects its competitive disadvantage in the market.
- Turnaround Plan: Stellantis is executing a $70 billion turnaround plan aimed at launching 11 new models to boost sales volume in North America by 35%, which is crucial for regaining market share and improving financial health.
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See More
