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Warren Buffett-backed BYD pops more than 5% as Chinese EV maker forecasts profit rise – Latest US News Hub

Warren Buffett-backed BYD said it expects a more than 300% jump in third-quarter profit. Despite headaches including a resurgence of Covid in China, rising material costs and a slowing economy, BYD has remained fairly resilient.

Nathan Line | Bloomberg | Getty Images

Chinese electric car maker shares BYD The company rose Tuesday after forecasting a huge jump in profit for the third quarter.

Late Monday, the Warren Buffett-backed company said net profit in the three months to Sept. 30 was estimated at 5.5 billion yuan to 5.9 billion yuan ($764.5 million to $820 million), an increase of 333.6% to 365.11%. Same period last year.

BYD’s Hong Kong-listed shares were 5.6% higher in afternoon trade.

“In the third quarter of 2022, despite the complex and severe economic situation, the spread of epidemics, extreme high temperature weather, high commodity prices and other adverse factors, the new energy vehicle industry accelerated its upward trend,” BYD said. In a statement.

The company said sales of its new energy vehicles, which include electric vehicles, “reached record highs” helping to increase market share and “driving significant improvement in earnings and effectively alleviating earnings pressures due to rising prices of upstream raw materials.”

A number of electric car makers, from Tesla to BYD, are grappling with the rising cost of raw materials such as lithium, which are critical for batteries.

From the start of the year to the end of September, BYD sold 1.18 million new energy vehicles, surpassing Tesla’s tally of just 900,000 deliveries.

BYD’s various models are among the best-selling new energy vehicles in China, the world’s largest electric vehicle market.

While the Shenzhen-headquartered company has remained fairly resilient in the face of headwinds such as the resurgence of Covid and a slowing economy in China, its smaller rivals have struggled.

In August, Chinese electric car start-up Xpeng reported weak vehicle supply guidance for the third quarter.

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Warren Buffett-backed BYD pops more than 5% as Chinese EV maker forecasts profit rise


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