Anyone who wondered which is the third most valuable carmaker in the world may hesitate between Volkswagen or Toyota. Tesla has the largest market cap, but it is very far from the $1 trillion it achieved months ago. Surprisingly, the third most valuable car company right now is... Chinese BYD.
With its share prices hitting $42.92, BYD is now worth $114.03 billion. Volkswagen is in the fourth position, valued at $106.16 billion. In the second place, Toyota has a market cap of $221.32 billion, which is more than Volkswagen and BYD combined.
It is not difficult to understand why the Chinese car company is doing so well. Its latest vehicle, the BYD Seal, sold 22,637 units less than six hours after reservations opened (4:20 PM on May 20 in China). BYD itself disclosed the amazing result, which is equivalent to four months of production at this early stage.
The only recent disruption on the wave of good news for the Chinese carmaker was the production suspension at the Changsha plant on May 9. According to CLS, nearby residents began to complain about nosebleeds, nausea, chronic coughing, and dizziness. The local government started investigations, and BYD decided to suspend production for rectification.
Unlike Tesla with its issues at Giga Shanghai, that should not impact BYD in a meaningful way. Its other factories can supply the vehicles that the Changsha plant currently manufactures: e2, e3, Destroyer 05, Qin Plus DM-i, Song MAX DM-i, Yuan Pro, and the K series electric buses. That’s 50% more models than Tesla has in its entire lineup at the Changsha plant alone – without counting the buses.
Apart from making electric and plug-in hybrid cars, BYD is also known for another crucial characteristic: its high verticalization level. The Chinese automaker manufactures its own semiconductors, batteries, other components, and even masks during the worst part of the international health crisis.
In the current automotive environment, that means BYD does not have to wait for suppliers to deliver anything. It just has to increase production. With the e-platform 3.0, Blade Batteries, and a new line of attractive electric vehicles, the Chinese company’s only restriction is reaching more markets. That explains why BYD is now the third most valuable company globally. We would not be surprised if it climbs to higher positions soon.
It is not difficult to understand why the Chinese car company is doing so well. Its latest vehicle, the BYD Seal, sold 22,637 units less than six hours after reservations opened (4:20 PM on May 20 in China). BYD itself disclosed the amazing result, which is equivalent to four months of production at this early stage.
The only recent disruption on the wave of good news for the Chinese carmaker was the production suspension at the Changsha plant on May 9. According to CLS, nearby residents began to complain about nosebleeds, nausea, chronic coughing, and dizziness. The local government started investigations, and BYD decided to suspend production for rectification.
Unlike Tesla with its issues at Giga Shanghai, that should not impact BYD in a meaningful way. Its other factories can supply the vehicles that the Changsha plant currently manufactures: e2, e3, Destroyer 05, Qin Plus DM-i, Song MAX DM-i, Yuan Pro, and the K series electric buses. That’s 50% more models than Tesla has in its entire lineup at the Changsha plant alone – without counting the buses.
Apart from making electric and plug-in hybrid cars, BYD is also known for another crucial characteristic: its high verticalization level. The Chinese automaker manufactures its own semiconductors, batteries, other components, and even masks during the worst part of the international health crisis.
In the current automotive environment, that means BYD does not have to wait for suppliers to deliver anything. It just has to increase production. With the e-platform 3.0, Blade Batteries, and a new line of attractive electric vehicles, the Chinese company’s only restriction is reaching more markets. That explains why BYD is now the third most valuable company globally. We would not be surprised if it climbs to higher positions soon.