BYD wygrywa z Teslą! Tak Chiny przejmują rynek aut elektrycznych!

Summary

The video discusses the potential growth and investment opportunity in BYD, a leading Chinese electric vehicle manufacturer. While comparing BYD to Tesla, the speaker emphasizes that they are not directly comparable due to Tesla’s broader business scope. BYD’s current valuation is considered attractive, with a relatively low P/E ratio and expected strong revenue growth. However, the political and legal risks of operating in China are highlighted. The speaker suggests BYD could be a good addition to an aggressive portfolio but still prefers Tesla for its higher volatility and broader future prospects.

Takeaways

• 😀 BYD's valuation is currently attractive, with a P/E ratio of just over 20, which is significantly lower than its long-term average of around 39.
• 😀 Despite BYD's share price being near its historical peak, its enterprise value to sales ratio (EV/Sales) is currently below its long-term average, sitting at around 1.
• 😀 Tesla is not directly comparable to BYD, as Tesla's valuation includes its investments in humanoid robots, autonomous taxis, and energy storage, not just car manufacturing.
• 😀 BYD's future growth heavily depends on its ability to expand in the Chinese market, which involves risks from potential political and legal changes in China.
• 😀 The Chinese government has the power to drastically impact companies, as seen with Jack Ma and Alibaba’s IPO being blocked, highlighting risks for BYD as a Chinese company.
• 😀 Analysts expect BYD’s revenue to grow by 29% in 2025 and maintain a double-digit growth rate for at least the next two years.
• 😀 Despite the potential risks, BYD’s valuation seems attractive given its strong growth prospects, especially when compared to more volatile companies like Tesla.
• 😀 The speaker prefers Tesla for a more aggressive portfolio due to its wider business model and higher volatility, offering more potential upside.
• 😀 While BYD is an interesting investment option, the speaker advises not to base a portfolio around it but to view it as a valuable addition to a diverse portfolio.
• 😀 Freedom 24 offers a promotional opportunity to receive free shares, including Tesla, by creating an account and depositing funds, which can help investors diversify their portfolios.
• 😀 The speaker promotes the premium version of the DNA portal for investors looking for daily market analyses and insights into the speaker's own portfolio worth over PLN 4 million.

Q & A

What is the current price-to-earnings (P/E) ratio of BYD, and how does it compare to its long-term average?

The current price-to-earnings (P/E) ratio of BYD is just over 20, which is nearly half of its long-term average, which typically hovers around 39.

How does BYD's enterprise value to sales ratio compare to its historical average?

BYD's enterprise value to sales ratio is currently around 1, which is below its long-term average.

How does the valuation of BYD compare to Tesla's in terms of price-to-earnings ratio and enterprise value to sales?

Tesla's price-to-earnings (P/E) ratio is significantly higher at 156, and its enterprise value to sales ratio exceeds 10, whereas BYD's ratios are much lower, highlighting the difference in market valuation.

Why is Tesla not considered a comparable company to BYD?

Tesla is not comparable to BYD because the market values Tesla not only for its car business but also for its ventures into areas like humanoid robots, autonomous taxis, and energy storage, which are not applicable to BYD.

What are the political and legal risks associated with investing in a Chinese company like BYD?

BYD faces significant political and legal risks due to China's unique legal environment, where government decisions can drastically impact businesses. This was seen with Alibaba's struggles after Jack Ma's public criticism of the Chinese government.

How does the Chinese government's influence affect businesses like BYD?

The Chinese government can impose arbitrary decisions that affect businesses, even large ones like BYD, if their activities do not align with the government's strategic goals, which could lead to sudden financial or operational obstacles.

What is BYD's expected revenue growth in 2025, and what does this suggest for the company’s future performance?

Market analysts expect BYD's revenue to grow by 29% in 2025, indicating strong future growth. This suggests that BYD is on track to maintain dynamic growth in the coming years, with double-digit growth expected to continue for at least two more years.

Should investors build a portfolio around BYD shares, according to the speaker?

The speaker advises against building a portfolio entirely around BYD shares. Instead, it is recommended as an interesting addition to an aggressive portfolio, but not as the central investment.

What does the speaker prefer over BYD for an aggressive investment portfolio?

The speaker prefers Tesla for an aggressive investment portfolio due to its higher volatility and potential for large returns, although they acknowledge that BYD could be a good supplementary addition for investors.

What offer is being promoted in the video related to investing in Tesla?

The video promotes an offer through Freedom 24, where users can receive free Tesla shares by creating an account, making a deposit, and entering a promotional code. The number of shares varies based on the deposit amount.