Chinese electric automaker BYD saw new energy vehicle (NEV) sales hit a record high leading it to have a strong quarter financially. BYD reported that its net income in the last quarter of the financial year came in at a record $2.07 billion.
According to the latest 2024 annual report, the record net revenue was a 73.12 percent increase year on year and up 29.37 percent quarter on quarter.
NEV sales drove sales for BYD
In the quarter under review, BYD’s gross revenue was a record $37.89 billion. This represented an increase of 52.66 percent year on year and a quarter-on-quarter increase of 36.66 percent.
The surge in NEV sales was the main reason for the strong revenue growth. In the fourth quarter, BYD sold a record 1,52 million NEVs, representing a year-on-year increase of 61.34 percent and a quarterly growth of 34.31 percent.
However, the electric car maker’s gross margin was down in the fourth quarter as operating costs surged during the period under review.
The gross margin in the fourth quarter was down 4.88 percent to 17.01 percent from 21.89 percent in the third quarter.
In the fourth quarter, the company’s operating cost was adjusted in its annual report in accordance with the latest accounting standards to include sales expenses.
Resultantly, in 2023 the adjusted operating cost to RMB 490,40 billion from the previously reported RMB 480,55 billion. The 2023 fourth-quarter gross margin was up to 21.22 percent to the newly fourth-quarter adjusted gross margin of 15.76 percent.
During the quarter under review, the electric automaker’s operating cash flow was RMB 77.18 billion, accounting for 57.8 percent of the annual operating cash flow.
Commenting on its idle funds in wealth management products, BYD said it plans to invest no more than RMB 60 billion. During the financial year of 2024, BYD’s full-year revenue was RMB 777.1 billion, which was a year-on-year increase of 29 percent.
Revenue hit $100 billion for the first time, beating Tesla
For the first time, revenue hit $100 billion surpassing that of Tesla, as the company saw its revenue of $97.7 billion in the current full year.
The Chinese EV maker has its advantage over Tesla in building cheaper cars, with its Seal EV asking for around $12,000 and advancing technology like its God’s Eye self-driving software has made the company’s cars a compelling option in China’s highly competitive auto market.
Last week, the company launched a new sedan, dubbed the Qin L, that would take on Tesla’s Model 3. The Qin L features the God’s Eye self-driving feature, has a range of 545 kilometers, and would start at $16,524, or half the cost of the Model 3.
In the same week, BYD said a new battery and charging system known as the Super e-Platform can charge at peak speeds of 1,000kW, providing around 250 miles of range in just five minutes, per BYD chair and founder Wang Chuanfu.
In comparison, Tesla’s fastest superchargers max out at 250kW, or a quarter of BYD’s claimed feat.
BYD, whose cars are not available in the US, said it will start selling EVs with the Super e-Platform next month and plans to add 4,000 high-power charging stations across China as it ignites the race for supercharging China.
According to The Guardian, the new charging system will be initially available in two electric vehicles – the Han L sedan and Tang L SUV which cost 270,000 yuan or $37,330. The company has revealed it will build about 4,000 charging units or piles across China to match the new platform.
Now, the latest development at BYD is expected to put pressure on American automaker, Tesla, which is currently going through a turbulent period characterized by negative investor sentiment with the stock falling 16% on 10 March in disapproval of Musk’s White House role.
The tech billionaire has been instrumental in cutting federal spending as part of the DOGE initiative under President Donald Trump’s administration.
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