Posted on 04/12/2025 9:16:28 PM PDT by SeekAndFind
In its preliminary earnings for the first quarter on Tuesday, electric automaker BYD revealed that net income could jump as much as 119% in the first 3 months of the year to 10 billion yuan ($1.4 billion), after delivering more than 1 million EVs across Q1 — up almost 60% on the same period last year.
While Trump’s tariffs have been a major bump in the road for other automakers, BYD — which had no plans to sell cars in the US owing to existing tariffs, even before this latest round — has had a pretty smooth year so far, with shares hitting a record high in March, after the company announced its market-leading superfast charging tech.
Less than a week later, execs and investors at the Shenzhen-based company had even more to cheer, after the EV giant posted 777 billion yuan ($107 billion) in sales across 2024, surpassing US rival Tesla’s annual revenue figures for the first time in 7 years.
BYD lagging TeslaTSLA $252.93 (-0.09%) on that measure has often been down to the Chinese automaker’s comparatively cheap cars, too, with one of its most popular EVs starting around $10,000. On model deliveries overall, BYD has been pulling ahead for years now.
Per numbers from CnEV, a company that tracks China’s electric vehicle market, BYD delivered just over 1 million EV units in the first 3 months of 2025, compared to Tesla’s 336,681 shipments over the same period, which disappointed investors in Elon Musk’s car company. Although Tesla’s recent struggles around the world have certainly led to more daylight between the two EV makers in recent months, the gap has looked increasingly difficult for the American automaker to close ever since it first ceded the lead in 2022.
In bad news for Tesla execs and investors, some worry that tariffs might only widen the gulf between the two.
Speaking with the New York Post recently, Wedbush analyst Dan Ives said that they were “probably drinking champagne” at BYD headquarters as Trump announced the tariffs, adding that the new restrictions only “accelerate BYD’s success,” and estimating that the tariffs could force additional costs of as much as $100 billion on automakers like Tesla each year.
Investors took note of the company’s better-than-expected preliminary results, pushing shares up as much as 7.8% on Tuesday, with BYD up ~20% so far this year, while Tesla has declined more than 40% in the same period.
We do. And we want Australia and other like nations to enact high tariffs against China. And if that means a 100% (or more) tax on their cars... fine. It will take a concerted effort of all partners, not just the US, to bring China to a fair trading position.
Per AI
President Trump has not explicitly encouraged U.S. free trade partners to impose high tariffs on China, but his actions have indirectly pressured other nations to align with his aggressive trade stance. Trump's administration has escalated tariffs on Chinese imports to unprecedented levels, reaching 145%, while granting temporary pauses or exemptions for other trading partners. This approach has led many countries to seek concessions or negotiate reduced tariffs with the U.S., rather than retaliating against China.
China, however, has responded differently by matching Trump's tariffs, increasing its duties on U.S. goods to 125%, and refusing to negotiate under pressure. Analysts suggest that Trump's strategy is aimed at compelling China to engage in negotiations by creating economic strain, but this approach has also disrupted global markets and strained relations with trade allies.
While Trump's policies have focused on targeting China specifically, there is no direct evidence that he has encouraged other nations to adopt similar high tariffs against China. Instead, his administration's actions have largely been unilateral and centered on reshaping U.S.-China trade dynamics.
BYD cars are tariffed high because they use Chinese software to run them. There were legitimate national security concerns resulting in the trade restrictions. There are a few busses in the US.
I know the current trade deal with China excludes electronics but eventually all electronics from CCP should be banned. No imports of critical importance should come from China.
ABC. Anyone But China.
For comparison, which sells better, a Civic or a Corvette? Corollas or GTRs? They may both be EVs but they’re not in the same market.
So then why put a 10% tariff on Australia if they do not tariff American products?
If we want them to ally with us against China, then antagonizing them is not a smart move.
They’re in Mexico today. There’s a BYD dealership just down the road.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.