BYD’s sales are declining due to increased competition, but its efforts to expand globally, remain affordable, and introduce new technology make the stock a steal.
The electric vehicle market has been volatile over the last year, but consumers are reporting high levels of satisfaction with their noncombustible cars, according to a new study by JD Power. This rising sentiment, combined with attractive metrics, makes Chinese battery EV manufacturer BYD (BYDDY 0.24%) a no-brainer buy right now.
Today’s Change
(-0.24%) $-0.03
Current Price
$12.49
Key Data Points
Market Cap
$138B
Day’s Range
$12.35 – $12.49
52wk Range
$11.20 – $20.05
Volume
967K
Avg Vol
1.8M
Gross Margin
23.15%
Dividend Yield
1.47%
The competition among EV manufacturers is fierce
BYD’s revenue surpassed rival Tesla’s (TSLA +0.10%) in 2025, and the company’s car sales reached 4.6 million. BYD isn’t without significant challenges, however, and the stock’s performance reflects just that.
Image source: Getty Images.
Over the past 12 months, the stock has fallen by more than 19%. BYD is facing stiffer competition in China and several consecutive months of declining sales. In its latest quarterly earnings, BYD reported a 3% decline in sales, which missed analysts’ estimates.
This doesn’t paint a full picture of what BYD is attempting to accomplish, though, and the headwinds the company faces seem more near-term than long-term. The world’s largest BEV manufacturer is opening a new plant in Hungary to expand European sales this year. BYD is focused on growth outside of China and remaining an ultra-affordable choice for global consumers. The company expects to sell 1.3 million vehicles outside of its home country this year, a 24% increase from 2025.
BYD’s CEO said his company struggled a bit due to a lack of differentiation from competitors, and it would soon be releasing new technology to get back on top. I believe that with its focus on global growth and affordability, BYD will rebound in the coming years.
BYD’s stock metrics look attractive
Right now, BYD’s forward P/E ratio is just under 17, and its PEG stands at 0.78. At its current price and metrics, BYD is trading more like a value stock than a growth stock. Taking all of this, as well as BYD’s strategy, into consideration, it appears BYD is undervalued.
BYD’s stock is also far less volatile than Tesla’s. BYD’s beta is a low 0.47, whereas Tesla’s is a more turbulent 1.89.
Geopolitical, competitive, and currency risks remain very much in play, but for investors seeking growth at a reasonable price, BYD fits the bill. Investors may need to practice patience as the EV market at large emerges from its recent downswing. If you are bullish on humanity’s eventual migration away from combustion vehicles, BYD is a dominant player on a mission to sell its cars around the world.
