Warren Buffett-backed BYD pops more than 5% after Chinese EV maker forecasts surging profits
Warren Buffett-backed BYD said it expects a more than 300% jump in third-quarter profit. Despite headwinds including a resurgence of Covid in China, rising material costs and a slowing economy, BYD has remained fairly resilient.
Nathan Laine | Bloomberg | Getty Images
Shares of Chinese electric carmaker BYD rose Tuesday after the company forecast a huge jump in profit for the third quarter.
Late Monday, the Warren Buffett-backed firm said net profit in the three months to Sept. 30 is estimated to be between 5.5 billion yuan to 5.9 billion yuan ($764.5 million to $820 million), a rise of 333.6% to 365.11% versus the same period last year.
BYD’s Hong Kong-listed shares were 5.6% higher in afternoon trade.
“In the third quarter of 2022, despite the complex and severe economic situation, the spread of the pandemic, extreme high temperature weather, high commodity prices and other unfavorable factors, the new energy vehicle industry continued to accelerate its upward trend,” BYD said in a statement.
The company said sales volume of its new energy vehicles, which include electric cars, “continued to reach record highs” helping boost market share and “driving significant improvement in earnings and effectively relieving the pressure on earnings brought by the rising prices of upstream raw materials.”
A number of electric carmakers from Tesla to BYD to have been grappling with the rising cost of raw materials, such as lithium, that are critical to batteries.
From the start of the year to the end of September, BYD has sold 1.18 million new energy vehicles, trumping Tesla’s figure of just over 900,000 deliveries.
BYDs various models are among the top-selling new energy vehicles in China which is the world’s largest electric car market.
While the Shenzhen-headquartered company has remained fairly resilient in the face of headwinds such as a resurgence of Covid in China and a slowing economy, its smaller rivals have faced difficulties.
In August, Chinese electric car start-up Xpeng reported weak vehicle delivery guidance for the third quarter.
Ramadan in UAE: Sharjah to ramp up inspections on shops, retailers during holy month
Uproar as Indigenous mother told to remove woven baby carrier at museum exhibit
ZooTampa voted one of the 10 best zoos in America by USA Today
The Leia Lume Pad 2 is a $1,100, glasses-free 3D Android tablet
Jack Dorsey’s Block Hit With Fraud Allegations for Massively Overstating Its Userbase
This Is the Best Running Gear I’ve Found for Short Runners
What Are Toothpaste Tablets? Plus 5 Options to Try in 2023: Bite, Huppy, Hello, Unpaste
A Ransomware Gang Claims It Hacked Amazon’s Ring
The US banking crisis isn’t over yet – far from it
Liverpool XI vs Real Madrid that made Steven Gerrard quit Anfield for good
‘90 Day Fiancé’ Star Jen Boecher Addresses the Eye Condition That Causes Her To Look ‘High All the Time’
Google Opens Early Access To Bard AI, Prompts Small Bump In Stock Price
What to know about the eyedrops linked to deaths and vision loss
Gigi Hadid Says She’s ‘Technically’ a Nepo Baby —’I Come From Privilege’
Busy Professionals Should Prioritize Their Well-Being, Including Finding Time To Eat During Tax Season
Lifestyle23 hours ago
Why John Legend and Chrissy Teigen's Sex Life Struggle Is So Relatable
News23 hours ago
Springfield couple wants to foster the newborn baby left on their doorstep
Tech22 hours ago
Animals without a brain still form associative memories
News16 hours ago
Boris comes out fighting over Partygate in committee showdown
Finance23 hours ago
Best Crypto to Buy Now 22 March – LHINU, XLM, FGHT, ALGO, METRO, ETC, CCHG, TARO
News3 hours ago
Denver high school shooting suspect dead, coroner confirms
Tech24 hours ago
Apple Music Users Are Complaining That They’re Seeing Other People’s Playlists
Tech24 hours ago
VW will support Android Automotive for the “lifetime” of a car—15 years