Published: October 19, 2022
The shares of this Chinese electric carmaker climbed on Tuesday after the company forecasted a massive increase in profit for the third quarter.
Warren Buffet, the seventh richest man in the world, backs this company, and it announced on Monday that its net profit for the three months ending September 30 is expected to rise between 333.6% and 365.11% from the same period last year.
That’s an estimated rise from $764.50 million to $820.00 million (5.50 billion yuan to 5.90 billion yuan).
Despite unfavorable factors like the dire economic situation, the pandemic, high temperatures, and high commodity prices, the new energy vehicle industry accelerated its upward trend in the third quarter of 2022, according to BYD.
The company stated that the sales volume of its new EVs reached record highs, boosted market share, improved earnings, and relieved the pressure on earnings due to the increased upstream raw material prices.
Many electric carmakers, like Tesla and BYD, have been struggling with the increased cost of raw materials critical to batteries, like lithium.
BYD, one of the biggest Tesla competitors, sold 1.18 million new EVs from the beginning of the year to the end of September, surpassing Tesla’s figure of over 900,000 deliveries.
Many BYD models are among the best-selling new EVs in China, the world’s largest market for electric vehicles.
The Shenzhen-based company has remained resilient in complex situations like the Covid resurgence in China and the tough economy, but its smaller competitors have struggled.
Xpeng, an electric car startup in China, reported weak third-quarter vehicle delivery guidance in August.