BYD issues stock buyback to fuel its dominant global EV expansion


The world’s EV leader, BYD (OTC: BYDDY), announced a stock buyback plan as it continues expanding into new markets. BYD is pushing into different segments with new luxury EVs and mid-size electric SUVs.

Expanding into new EV segments

After selling a record 526,409 all-electric vehicles in the fourth quarter of 2023, BYD topped Tesla to become the best-selling EV maker globally.

The automaker’s success was fueled by its lineup of affordable EVs like the Dolphin, Atto 3 (Yuan Plus in China), and Seal. However, BYD is quickly expanding into new segments.

BYD launched its Yangwang, an ultra-luxury brand, in January 2023, showcasing two vehicles, the U8 off-roader and the U9 electric supercar. The brand launched the rugged Yangwang U8 SUV as its first vehicle in September, with a $150,000 (1,098,000 RMB) price tag.

The luxury off-roader packs 1,200 hp and includes innovative features like 360-degree tank turns, tire blowout stabilization, and wading. It even includes a “float mode” to navigate through deep water during an emergency.

Yangwang U8 (Source: BYD/Yangwang)

Last month, BYD revealed the luxury brand’s first sedan, the U7. BYD’s Yangwang U7 includes four electric motors for 1,300 combined hp (960 kW).

With a 135.5 kWh LFP battery pack from BYD’s FinDreams battery unit, the U7 has up to 497 miles (800 km) CLTC range. The U7 comes in base (447 mi) and long-range (497 mi) models with prices starting around $140,000 (1,000,000 RMB).

BYD Yangwang U7 (Source: Yangwang)

BYD will officially launch the U9 electric supercar on February 29, 2024, according to invitations sent out.

The Yangwang luxury U9 supercar EV features the same 1,300 hp (960 kW) quad motor system for a 0 to 60 mph sprint in under 2 seconds.

BYD Yangwang U9 (Source: BYD)

Meanwhile, BYD is launching several new mid-size electric SUVs aimed at Tesla’s sweet spot with its best-selling Model Y.

BYD unveiled its Sea Lion 07 in November, calling it its “first mid-size urban smart electric SUV.” At 4,830 mm long, 1,925 mm wide, and 1,620 mm tall, the Sea Lion 07 will directly compete with Tesla’s Model Y (4,760 mm long, 1,921 mm wide, and 1,624 mm tall).

BYD Sea Lion 07, the brand’s first “mid-sized urban smart electric SUV” (Source: BYD)

The Sea Lion 07 is expected to start at around 200,000 RMB to 260,000 RMB ($28,000 – $35,900). BYD launched another mid-size SUV, the Song L, in December, starting at 189,800 RMB ($26,700) with up to 662 km (411 mi) CLTC range.

BYD issues stock buyback

BYD announced a stock buyback plan, according to a filing, as it looks to turn around falling share prices and lure investors to fuel its expansion.

Share prices have fallen nearly 32% from a 52-week high of $71.70 in July to around $48.70. BYD stock is up about 4% on Monday as investors welcome a buyback.

BYD (OTC: BYDDY) stock chart over the past 12 months (Source: TradingView)

Companies will often buy shares to show investors they are confident in their vision. It’s essentially a way of “putting your money where your mouth is.” It can also create more shareholder value.

BYD’s overseas expansion has mainly consisted of low-cost EVs, but the automaker is considering introducing its new higher-end models in Europe. The company could bring its Yangwang U8 off-roader to Europe to take on the Mercedes-Benz G-Class, Range Rover, and other premium brands.

BYD Seal (Source: BYD)

The company is not the only EV maker with falling share prices. Tesla, Rivian, Lucid, NIO, and essentially the entire segment has slipped over the past few months with global macroeconomic fears and ongoing price cuts leading to deteriorating margins.

That said, BYD and other EV stocks have rebounded this month, with BYDDY shares up nearly 12% after hitting a yearly low of $43.62 earlier this month.

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