Over the past few months, the BYD auto stock has gone through the roof. This stock surged during the final quarter of 2023 and could be good for 2024.
BYD is a Chinese EV company on the verge of global expansion. It’s entirely possible that some future EVs in America could wear the BYD logo and be part of this company. The EV market is expanding quickly, with only short slowdowns here and there. Recently, a survey revealed that nearly half of all U.S. consumers intend to purchase an electric car over the next two years. This could impact the growth of many EV company stocks.
BYD expands into the global market
BYD electric vehicles are a dominating force in China, with this company showing its ambition and vision beyond the limits of the Chinese market. A third-quarter surge of 67% brings BYD extremely close to the overall sales figures of Tesla, which has been the top-selling EV brand for several years.
In addition to the sales surge, BYD showed an impressive 204% increase in profits during the first half of the year and also reported a 28.6% increase in year-over-year revenue growth.
BYD has plans for global expansion during 2024 with a new factory in Thailand and expansion into various markets. This EV company is already making progress in other markets, with strategic plans to expand into Japan, Australia, and France.
Although the BYD auto stock is already at an all-time high, there’s good reason to believe the price will continue to increase, and the company will expand into further markets during 2024.
What other EV auto stocks are on the rise?
Another Chinese EV company is LI Auto, which significantly increased deliveries of its vehicles throughout the year. In September, LI delivered 212% more vehicles than the previous year. Although this figure is only 36,060, it represents growth and improvement in the EV sector. This company is showing strong financial gains with a projected increase in revenues each quarter. LI Auto is the first Chinese EV manufacturer to reach 500,000 deliveries, and this company is expanding its lineup with the launch of three new models.
NIO has been a Chinese EV stalwart for the past few years. Unfortunately, this company faced supply chain issues and lockdowns this year but has bounced back from these challenges. This bounce back showed an increase in deliveries from 23,520 cars in Q2 to 55,432 cars in Q3. NIO has delivered an impressive number of cars in 2023 and could be one of the growth stocks alongside the BYD auto stock. This company sets itself apart with its Battery-as-a-Service offering, which puts it ahead of many of the other Chinese EV companies.
NIO makes an interesting move into a world where other automakers might venture. This company recently introduced an Android-based phone that’s made to seamlessly interface with NIO vehicles. This new phone makes the perfect pairing for the NIO vehicles sold and enables drivers to avoid many of the connectivity hassles found in other vehicles.
NIO is also a five-star safety brand, which makes it one of the safest choices for Chinese drivers looking for a trustworthy EV. Both the ET5 sedan and EL7 SUV earn this top safety distinction, which could be a strong factor for future sales. NIO stock might be an affordable option before it hits an all-time high.
Chinese EV companies for future investors
Chinese companies embraced and moved the needle in the EV world much faster than electric vehicle companies from other countries. Only Tesla seems to have a lead against these Chinese EV companies. Because these three companies seem to have a stronghold on the EV market for the future, all could be great companies for investors to trust with their money. BYD auto stock might end up being the foundational brand in the electric vehicle world, with Tesla being the cornerstone that started it all.
Disclaimer: Investing is always risky
Although BYD, LI Auto, and NIO all look promising today, they could face challenges that might cause their stock price to drop significantly in the near future. Any smart investor understands the importance of diversification, which is simply spreading your money around in various industries.
Still, if you’re looking for a good EV stock to buy and want to ride the projected upward wave, the BYD auto stock could be a good option, as could LI Auto or NIO. With all three companies projected to continue their upward trend, investors could enjoy seeing their money increase with these EV stocks.
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