BYD stocks rally after 5-min charge reveal, investments in Türkiye, Hungary continue

Shares of China’s automaker BYD Co. soared to a record high following the company’s announcement of a new line of electric vehicles (EVs) that can charge almost as quickly as a traditional gasoline-powered car receive fuel.

This new battery technology promises to significantly shorten charging times, a key hurdle for many consumers hesitant to make the switch to electric vehicles.

Game-changing battery technology

On Tuesday, BYD’s stock jumped by as much as 6% at the opening of trading in Hong Kong, propelling the company’s market value to nearly $162 billion. This places BYD’s market capitalization higher than that of automotive giants Ford, General Motors, and Volkswagen combined.

The breakthrough technology was revealed by the company’s chairman and founder, Wang Chuanfu, who shared that the new battery and charging system could add up to 400 kilometers (249 miles) of range in just five minutes of charging. This new technology, initially tested on the Han L sedan, is expected to be available in vehicles starting next month.

Shift in strategy for BYD

Industry analysts see this announcement as a significant shift in BYD’s strategy. According to Macquarie Capital analysts, led by Eugene Hsiao, the company is moving beyond competing on price and vehicle design.

This development could mark another major step in BYD’s ongoing battle with Tesla for the title of the world’s top EV seller. In February, Tesla’s sales in China plummeted by 49%, a significant decline that saw its shipments fall to just 30,688 units—the lowest monthly figure since July 2022.

BYD’s new technology could further bolster its position, especially in comparison to Tesla’s Supercharger network, which can add up to 275 kilometers of range in 15 minutes. With the ability to provide more range in a fraction of the time, BYD’s new charging platform could prove to be a major competitive advantage.

BYD’s European strategy continues: Türkiye, Hungary and Germany

Looking beyond the Chinese market, BYD is also expanding its footprint in Europe. As domestic demand in China slows, the company is eyeing new markets to maintain growth. BYD is considering building its third European assembly plant, potentially in Germany, following its investments in Hungary and Türkiye. This move would not only solidify the company’s presence in Europe but also help bypass the European Union’s tariffs on Chinese-made electric vehicles, introduced last year.

This focus on local production in Europe comes as Chinese automakers, including BYD, shift their attention to expanding sales in the European market. The strategic move to set up assembly plants in key European locations aims to avoid tariffs and bolster sales of low-cost vehicles, which have become increasingly popular in the region.