(Bloomberg) — BYD Co.’s earnings rose on back of soaring electric vehicle sales but fell short of analyst expectations as a price war in China hit the bottom line.
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Sales in China helped offset a decline in global demand, lifting BYD’s preliminary 2023 net income at least 75% from the previous year to between 29 billion yuan ($4 billion) and 31 billion yuan, the company said Monday in a filing with the Shenzhen Stock Exchange. But the total fell short of an average analyst estimate of 31.5 billion yuan.
BYD shares fell about 4%, extending losses over the past year to roughly 37%.
Read More: BYD Crowned China’s No. 1 Selling Car Brand for 2023 Over VW
BYD sold 526,409 fully electric cars in the final quarter of 2023, surpassing Tesla Inc. for the first time as the largest seller globally. The growth has been driven mainly by its much broader lineup of cheaper models in China.
Read more: EV Stocks Are In Shambles Everywhere You Look: Hyperdrive
Like other EV makers, BYD has been hit by a price war in China, the world’s largest auto market. In November, the Shenzhen-headquartered EV maker discounted its popular Qin, Han and Tang models by as much as 10,000 yuan in a bid to reach its annual deliveries target.
Geopolitical tensions are also taking a toll. BYD is one of three carmakers selected for further scrutiny in the European Commission’s anti-subsidy investigation to determine whether state support from the Chinese government has given the manufacturers an unfair advantage.
Read more: EU Formally Opens Subsidies Probe Into EVs Made in China (1)
(Updates with additional details throughout.)
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