Electric vehicle (EV) stocks maintain a cult following in the market, and for good reason. Many EV makers are now pushing the envelope with new technology, and nowhere is that more evident than in China. Chinese automakers have transitioned from playing catch-up to setting the pace in the global EV market, driven by robust government support and rapid advancements in battery technology. Among many such Chinese automakers, one breakout star is BYD (BYDDY). 

Legendary investor Warren Buffett was certainly ahead of the curve when he placed an early bet on BYD in 2008, long before it became a global EV powerhouse. While Tesla (TSLA) continues to dominate headlines in the EV space, BYD has been steadily gaining ground, so much so that it’s now outperforming the Elon Musk-led company in key financial metrics. Last year, BYD surpassed Tesla in annual revenue, and in the first quarter of this year, it left Tesla in the dust with a staggering $1.3 billion in net profit, more than triple Tesla’s $409 million.

Still, even leaders face market turbulence. BYD’s stock has recently come under pressure after the company announced a wave of summer price cuts. On May 23, it slashed prices across several models, including the Seagull Smart Driving Edition hatchback, now starting at just $7,656. With the stock pulling back on this news, the question now is whether investors should view this as a reason to sell or a rare buying opportunity in a long-term winner.

About BYD Company Stock

Valued at $159.1 billion by market cap, Shenzhen-based BYD (BYDDY) has a legacy spanning more than three decades, far beyond what many might expect. With over 30 industrial parks globally, BYD has expanded well beyond EVs, making notable progress in fields such as new energy and rail transit. The company’s work covers a wide spectrum, from energy generation and storage to real-world zero-emission solutions, highlighting its deep involvement in advancing sustainable technologies across industries.

BYD shares took a sharp hit on May 27, falling nearly 9.3% following news of the company’s aggressive price cuts. But zoom out, and the bigger picture tells a different story. Over the past year, the stock has delivered a remarkable 94% return. Even in 2025, BYD is up nearly 51%, a striking contrast to the broader S&P 500 Index’s ($SPX) marginal gain and rival Tesla’s 11.6% drop over the same period.

Even with such impressive stock performance, BYD’s valuation seems surprisingly reasonable compared to its biggest competitor. The stock trades at just 22.98 times forward earnings and 1.63 times sales, far more grounded than Tesla’s sky-high multiples of 246.89 times forward earnings and 11.19 times sales. For investors seeking exposure to the EV space without the sky-high price tag, BYD offers a compelling balance of growth and value.

BYD’s Q1 Earnings Snapshot 

BYD kicked off fiscal 2025 with a strong first-quarter earnings report in April, underscoring its growing dominance in the EV space. The company posted operating revenue of 170.4 billion yuan, a 36.4% increase from the same period last year. Much of this growth stemmed from continued momentum in its new energy vehicle (NEV) segment, which remains the backbone of BYD’s expansion strategy.

On the profitability front, BYD delivered an impressive 100.4% year-over-year surge in net profit attributable to shareholders, reaching 9.2 billion yuan. Earnings per share also saw a dramatic lift, climbing 98.7% to 3.12 yuan. These gains highlight the company’s ability to scale effectively while maintaining solid margins, a key differentiator in a competitive EV landscape.

While not all numbers moved higher, the broader financial picture remains healthy. Net cash flow from operating activities dipped 16.1% annually to 8.6 billion yuan, but the company experienced a steady rise in total assets, which reached 840 billion yuan by the end of the quarter, a 7.3% year-over-year increase. Taken together, the results reinforce BYD’s position as a financially sound and fast-growing force in the global EV market.

What Do Analysts Expect for BYD Company Stock? 

Even with recent price cut jitters shaking the stock, Wall Street’s confidence in BYD hasn’t wavered. All six analysts covering the company rate it a “Strong Buy,” with a consensus price target of $123, implying nearly 21% upside from current levels. 

Overall, the company’s fundamentals appear to be solid, backed by strong profitability, a global scale, and a valuation that’s far more reasonable than that of its high-flying peers. For investors seeking a global EV winner with staying power, BYD might just be the best bet hiding in plain sight.