BYDDY
🏆 BYD, Tesla’s primary competitor, demonstrates strong fundamentals, surpassing Tesla in revenue with significant growth projections (40-20% quarterly expected), despite a much smaller market capitalization.
📈 The stock shows exceptional relative strength (RS Rating 98), hitting new highs while the market struggles, indicating strong buying pressure and potential for trend continuation after a long consolidation period.
🌍 BYD may actually benefit from tariff wars, as its strategic focus on China, Europe, and Latin America (avoiding the US market) could give it a competitive edge over US manufacturers facing tariffs abroad.
@VisionariosBolsa:
“And the last stock I want to talk about is BYD. For those who don’t know it, well, it has a very simple introduction because it’s Tesla’s main rival; in fact, it’s known as the Chinese Tesla. So why then, if we’re seeing Tesla suffer so much in recent months, seeing so much volatility, if tariffs do affect Tesla, don’t they affect BYD? What’s going on here? Well, to begin with, tariffs affect BYD very little to none, precisely because it’s a company completely independent of the United States; it doesn’t sell in the United States, okay? BYD has done this for a very long time; it’s not that now, because of the tariffs, it’s not focusing on the American market, but rather, from the beginning, it said, ‘Hey, what’s our mission? Focus on China. Let’s become number one in China.’ They already are. ‘And now let’s focus on markets like Europe and South America,’ precisely because they want to avoid these geopolitical conflicts that China has always had with the United States in recent history, right? We already saw it also in the previous term of Donald Trump. That’s why if we look a little at its fundamentals, I think it would be super interesting to also bring, and well, you can leave it in the comments if you think it could be interesting, and as always, I would bring that video because I think it could be interesting to break down both Tesla and BYD and make a comparison. Because what we’re seeing in BYD is that it’s a company that is invoicing more than Tesla, okay? And that actually has better growth forecasts than Tesla. Notice how it’s a company that is already invoicing 37 billion dollars quarterly in the last quarter, but beware because the growth is 48%, and it’s expected to continue with growth of 40%, 20% quarterly, which is truly insane considering the growth data it’s having compared to the revenue the company generates. Furthermore, it’s a company that only has a market cap of 132 billion, okay? That’s tiny. In fact, if we compare it with Tesla, which has a capitalization of 800-900 billion, obviously Tesla is an ecosystem far beyond just electric vehicles, but it’s truly insane what we’re seeing in BYD. Now, what is the price telling us, and why do I consider it might be so interesting to have this company, even if just on the watchlist, precisely amidst this tariff crisis we’re experiencing in the market? Well, precisely because, without going any further, in recent weeks, while the entire market is collapsing, we’re seeing how this company is making all-time highs. Notice how we have an RS rating of 98. Remember, the RS from this platform I use scores companies from 1 to 99, from the lowest to the highest relative strength in the market. Therefore, we’re talking about one of the largest, the best companies in the market in terms of relative strength. We’re seeing all-time highs. We’re starting to see how the 10-week average begins to appear in that zone and starts to be super interesting support. And also, if we go to a monthly chart, notice how this company has produced charts identical to Tesla’s, but today it’s surpassing it in performance, not just in vehicle sales, in revenue, but also in performance, it’s surpassing it. Notice how we had that very strong rise, just like we saw in Tesla in 2019. If we compare the graphs, notice how Tesla, in this case, that rise in 2019 was much more pronounced. We’ve been consolidating all these years since then, and in recent months, we had that attempt to go to all-time highs in Tesla. What are we seeing in BYD? Well, precisely that we also had that super strong rise in a very short time. We’ve been consolidating for several years, but unlike Tesla, we have broken all-time highs, and we are there fighting with those new all-time highs. Therefore, what could we see in this company? The same thing I told you about Tesla in recent months. What could happen if it manages to break all-time highs? That this long consolidation is reflected in a continuation of the trend. And not only that, but beware, because we’ve talked about a company like HIMS that is suffering in recent weeks, in recent months, and tariffs might not even affect it. We’re talking about a company like Grindr that has a lot of relative strength; we’re seeing how it’s being accumulated in a stock like Grindr, but really, more of the same, tariffs might not even affect it. But what could happen with BYD? Precisely that it could actually benefit from this tariff war issue. Why? Because I’ve already said it, BYD does not depend on the United States; BYD does not manufacture in the United States. In fact, the only thing it has in the United States is a small factory for electric buses for a couple of suppliers; it makes some electric buses, I don’t remember in which state. That’s the only thing it has, okay? It doesn’t sell vehicles, it doesn’t sell cars in the United States. Therefore, it has zero dependence on a country like the United States. So, what happens if the United States enters a tariff war with Europe? Well, precisely all manufacturers of electric vehicles from the United States will be harmed by the tariff war. However, this will give a greater opportunity for BYD’s expansionary policy in Europe to flourish much more because it will probably enter with much better prices than the vehicles… if it already comes with better prices being a Chinese vehicle, it will have much more competitiveness than American vehicles, which will have a much harder time competing in this environment of tariff policies. What could happen in a country like Mexico? Well, hey, if Mexico also has retroactive policies with American vehicles, BYD will arrive and eat up all the market share. Therefore, beware, because BYD is not only potentially unaffected by these tariff policies, but it could even come out super favored because China ends up… strengthening its friendships with these countries, with the European Union, with countries in South America, and therefore we see how BYD can gain even more market share and may have it even easier, and even improve these numbers we are seeing. So, as I said, we are already seeing how, at the relative strength level, it’s a stock that is really being bought, just like we saw in Grindr. While the whole market is selling off, while there’s a lot of distribution, the money isn’t disappearing; the money is entering stocks like these because otherwise, we wouldn’t see how we are making all-time highs, how demand is increasingly higher, how we could be starting a new uptrend. So, as I told you before, while everything falls, don’t look for what falls the most. And if you look for something that falls, let it be because it has some sense, some logic, because perhaps we are at an interesting support point, as we can see in HIMS. But apart from that, focus on these stocks that have relative strength, that are having an uptrend, because they are probably not only the ones that will rise first when the market bounces and the market goes up, but also the ones where you can start making money right away. And above all, they are super easy stocks to trade because remember that the trend is always your friend, and when you trade in favor of the trend, it’s much easier for you to end up making money in the stock market. So, I say, three stocks that I think are super interesting: Hims, Grindr, BYD, each with its reasons. Hims, a fall that could leave a super interesting price, especially in that support zone, especially a stock that might not even be affected by these tariffs. We’re talking about Grindr, stocks that are not being affected, relative strength, we can see how it resumes the trend in the coming weeks. And BYD, not only are tariffs not affecting it, but it could even emerge with a strengthened position, and we are already seeing how investors are positioning themselves in a company like this.”
Watch the exact part of the video where @VisionariosBolsa talks about BYD Company Limited here:
Watch the video on YouTube
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