BYD Stock’s Dramatic Fall – Should You Still Hold On Tight to This EV Giant?

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BYD (BYDDY), that electric vehicle powerhouse from China, is cranking out more vehicles than Tesla ever could dream of-except when you peek at their stock price, it’s like comparing a Ferrari to a tricycle. Yes, BYD’s market cap is just shy of $990 billion, while Tesla’s over there, doing a victory lap at $1.3 trillion. It’s like watching a gold medalist race a sprinter with an extra leg. But why, you ask? How could a company producing so many cars be outpaced by a brand that’s practically a Silicon Valley icon? A few plot twists, my friend.

The drama? BYD shares are down a whopping 20% since May, while Tesla has been soaring like a bald eagle on a fresh thermos of coffee, up 40%. So, is this a clearance sale on BYD stock, or are we looking at a fire sale of mistakes?

Looking at those shares, you might think it’s the deal of a lifetime-but hold your horses! Before you race to the checkout, let’s take a little detour and review the fine print.

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1. Warren Buffett’s Big BYD About-Face

Ah, Warren Buffett. The Oracle of Omaha. The guy who can predict your retirement strategy like he’s reading your future in a bowl of soup. Turns out, he had a thing for BYD-until, well, he didn’t. Seventeen years ago, he made a splash with a $230 million investment for a 10% stake. And what did he get? A juicy 2,000% return. That’s right, folks, a whopping two thousand percent. But-plot twist-he sold it all this year.

Why? Well, first off, BYD is still very much a Chinese company. And when your home base is more “Great Wall” than “Great Opportunity,” things get a little tricky. Around 80% of BYD’s sales come from China, which, as it turns out, is kind of like trying to run a marathon in flip-flops-you’re gonna hit some bumps. The Chinese economy is slowing down, GDP growth last year was barely a sprint at 5%. BYD’s local sales have been suffering in 2025, and guess what? Management cut its sales forecast. Like a bad haircut-nobody saw it coming, but now you have to live with it.

And just when things seemed like they couldn’t get worse, BYD flunked a government audit. Yes, you read that correctly. The government, who has been handing out subsidies like candy on Halloween, may want their trick-or-treat candy back-over $50 million worth. The government’s influence on the company is growing, but where it leads is anyone’s guess. Think of it like navigating a maze blindfolded. Fun, right?

2. BYD and Tesla: Don’t Put Them in the Same Basket

Now, I know what you’re thinking-“If BYD is selling more cars than Tesla, why not grab the stock while it’s on sale?” Well, slow down there, Speed Racer. While it’s true that BYD is trying to rev up its engines internationally, they’re stuck in a bit of a rut. China’s sluggish economy and a shrinking population mean BYD’s future isn’t going to be one big happy growth story unless it starts selling its cars on Mars, or at least in Europe and Latin America. But hey, they’ve made a deal with Uber Technologies, so they’re planning to roll out cars for drivers abroad. Who’s the lucky winner here? Uber. They’ve also got their eyes on the robotaxi market, which could eventually be worth more than $5 trillion. That’s a lot of zeros, but don’t get too excited just yet.

On paper, BYD looks like a steal. The stock is going for about 1 times sales, compared to Tesla’s nearly 17 times sales valuation. You could practically hear the “cha-ching” in your head. But here’s the catch: BYD isn’t Tesla. Tesla’s leading the charge in the robotaxi market, while BYD is just a supplier to Uber. It’s like being invited to a party and realizing you’re just there to take out the trash. Not quite the same thing, is it?

So, should you jump on the BYD bandwagon? Well, if you’re comfortable with a little chaos (and Chinese government regulations) and you can handle the roller coaster ride, you might just find a rare gem. But don’t kid yourself-this isn’t Tesla. Not by a long shot.

To sum up-BYD stock is a bit like a mystery novel: full of potential twists and turns, but with a few chapters you might want to skip. 📉

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2025-10-18 16:03