BYD is buying back stock to fuel its dominant global expansion with new EVs
The world’s EV leader, BYD (OTC: BYDDY), announced a stock buyback plan as it continues expanding into new markets. BYD is pushing into different segments with new luxury EVs and mid-size electric SUVs.
Expanding into new EV segments
After selling a record 526,409 all-electric vehicles in the fourth quarter of 2023, BYD topped Tesla to become the best-selling EV maker globally.
The automaker’s success was fueled by its lineup of affordable EVs like the Dolphin, Atto 3 (Yuan Plus in China), and Seal. However, BYD is quickly expanding into new segments.
BYD launched its Yangwang, an ultra-luxury brand, in January 2023, showcasing two vehicles, the U8 off-roader and the U9 electric supercar. The brand launched the rugged Yangwang U8 SUV as its first vehicle in September, with a $150,000 (1,098,000 RMB) price tag.
The luxury off-roader packs 1,200 hp and includes innovative features like 360-degree tank turns, tire blowout stabilization, and wading. It even includes a “float mode” to navigate through deep water during an emergency.
Last month, BYD revealed the luxury brand’s first sedan, the U7. BYD’s Yangwang U7 includes four electric motors for 1,300 combined hp (960 kW).
With a 135.5 kWh LFP battery pack from BYD’s FinDreams battery unit, the U7 has up to 497 miles (800 km) CLTC range. The U7 comes in base (447 mi) and long-range (497 mi) models with prices starting around $140,000 (1,000,000 RMB).
BYD will officially launch the U9 electric supercar on February 29, 2024, according to invitations sent out.
The Yangwang luxury U9 supercar EV features the same 1,300 hp (960 kW) quad motor system for a 0 to 60 mph sprint in under 2 seconds.
Meanwhile, BYD is launching several new mid-size electric SUVs aimed at Tesla’s sweet spot with its best-selling Model Y.
BYD unveiled its Sea Lion 07 in November, calling it its “first mid-size urban smart electric SUV.” At 4,830 mm long, 1,925 mm wide, and 1,620 mm tall, the Sea Lion 07 will directly compete with Tesla’s Model Y (4,760 mm long, 1,921 mm wide, and 1,624 mm tall).
The Sea Lion 07 is expected to start at around 200,000 RMB to 260,000 RMB ($28,000 – $35,900). BYD launched another mid-size SUV, the Song L, in December, starting at 189,800 RMB ($26,700) with up to 662 km (411 mi) CLTC range.
BYD issues stock buyback
BYD announced a stock buyback plan, according to a filing, as it looks to turn around falling share prices and lure investors to fuel its expansion.
Share prices have fallen nearly 32% from a 52-week high of $71.70 in July to around $48.70. BYD stock is up about 4% on Monday as investors welcome a buyback.
Companies will often buy shares to show investors they are confident in their vision. It’s essentially a way of “putting your money where your mouth is.” It can also create more shareholder value.
BYD’s overseas expansion has mainly consisted of low-cost EVs, but the automaker is considering introducing its new higher-end models in Europe. The company could bring its Yangwang U8 off-roader to Europe to take on the Mercedes-Benz G-Class, Range Rover, and other premium brands.
The company is not the only EV maker with falling share prices. Tesla, Rivian, Lucid, NIO, and essentially the entire segment has slipped over the past few months with global macroeconomic fears and ongoing price cuts leading to deteriorating margins.
That said, BYD and other EV stocks have rebounded this month, with BYDDY shares up nearly 12% after hitting a yearly low of $43.62 earlier this month.
Source: Automotive News
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Chevron is not seeing signs that the U.S. is close to a recession even as President Donald Trump’s tariffs weigh on expectations for oil demand, CEO Mike Wirth said Tuesday.
“There’s no signs that we see at this point that we are in or close to a recession,” Wirth told CNBC’s “Squawk Box.” “There are signs that growth may be slowing and we have to always be prepared for that.”
The International Monetary Fund on Monday cut its growth outlook for the U.S. this year to 1.8%, down from 2.7% previously.
The oil market is expecting reduced demand as a consequence of Trump’s tariffs and the decision by OPEC+ increase production faster than expected, Wirth said. Chevron isn’t changing its capital spending plans in response to drop in prices, the CEO said.
U.S. crude oil prices have fallen about 11% since Trump announced his tariffs on April 2. West Texas Intermediate was last up about 72 cents at $63.80 per barrel. OPEC and the International Energy Agency have cut their demand outlooks for this year.
Wirth said U.S. onshore oil production in patches like the Permian Basin is likely to pull back if prices hit $60 per barrel. Offshore production likely won’t be affected, he said.
“That’s an area where if we were to be at a $60 price or even lower you’re likely to see activity pull back in this sector and you’ll see the production response over a few months,” Wirth said. “That’s what we should watch, not so much the deep water activity.”
Chevron is not expecting a major direct impact on its business from Trump’s tariffs as energy has largely been exempt from the levies, Wirth said.
“The effects that we feel are likely to be more the macroeconomic effects as they flow through the economy,” Wirth said. “The bigger issues would be what would it mean for growth, and global trade and how does that evolve.”
Executives at oil and gas companies were scathing in their criticism of Trump’s tariffs in an anonymous March survey by the Federal Reserve Bank of Dallas, warning that steel tariffs were raising their costs and low prices could impact their activity.
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Little is known about super-secretive EV startup Slate, but the fledgling brand is rumored to be backed by Jeff Bezos and determined to shake up the existing electric order with an affordable lineup of compact SUVs and pickups with that golden $25,000 price tag.
Now, at least, we know what it’s gonna look like. The battle of the billionaires is on!
Redditor jonjopop over at the spotted subreddit spotted what looks like an early prototype of an unbranded SUV with bizarre “CryShare” wrap. CryShare, as a concept, seems to combine the functionality of a ride sharing app like Uber or Lyft with the familiar (to parent, anyway) idea that small babies will often sleep better in a moving car than in their own cribs … but that’s not what’s important here.
Instead, focus on the vehicle itself – parked on Abbot Kinney Boulevard in Los Angeles without explanation or fanfare, this is our best look yet at the kind of vehicle(s) Slate is likely to reveal in the coming days.
Stumbled upon the Bezosmobile [Slate Automotive…idk?] being revealed with an absolutely bizarre marketing campaign
byu/jonjopop inspotted
Other local automotive journalists caught wind of the public unveiling, too – and our friends at The Autopian (Hi, Matt!) sent their own David Tracy out on the streets of LA to check it out. Tracy took the following video and posted it to Instagram.
The Slate breaking cover and causing buzz just ahead of what’s sure to be a painful Q1 earnings call for Tesla is a masterstroke of marketing – especially as doubts surrounding the viability of a “less expensive” Tesla Model Y or Model 3 continue to mount amid the uncertainty of Trump’s tariffs and declining sales of the brand’s more profitable models both at home and abroad.
As with so much involving Slate, however, there is nothing here written in stone – or even cast in cheese. Nothing has been announced, nothing is promised, and for all we know this might have more to do with the affordable Rivian brand launch, a new BYD, or be a viral marketing bit from some local Art Center design student in (relatively) nearby Pasadena. In fact, about the only thing I think we can say about Bezos (?) new Slate project with confidence today is this: Elon could probably use that drink.
SOURCES | IMAGES: Reddit, The Autopian.
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