An ‘Extended Tariff Scenario' Would Hurt Tesla and Help This 1 Key Electric Vehicle Rival
President Donald Trump has now set an effective 125% tariff on Chinese imports, threatening to impact global supply chains and raising market uncertainty. Analysts warn that these tariffs, if in place for an 'extended' period, may disrupt supply chains, increase production costs, and significantly burden American automakers like Tesla (TSLA).
Wedbush Securities analyst Dan Ives emphasizes that such tariffs threaten Tesla's profitability and could shift Chinese consumer preferences away from U.S. brands burdened by steep import costs.
But where Tesla faces challenges, China's BYD (BYDDY) sees opportunity. With its vertically integrated production model and groundbreaking innovations like five-minute charging and a competitive price point, BYD is poised to benefit from tariffs that widen the cost gap between American and Chinese vehicles.
Even without a U.S. presence, BYD's strategic advantages make it well-positioned for growth. Analysts are increasingly bullish on BYD, predicting that prolonged tariffs against China could speed up its global expansion, especially in Europe, Mexico, and South America.
About BYD Stock
BYD has become a global leader in electric vehicles and renewable energy solutions. BYDDY stock has delivered extraordinary returns in the past few years, rallying 63% over the past 52 weeks alone.
BYD vs. Tesla
For years, Tesla has been the undisputed leader in electric vehicles, but BYD is quickly challenging that dominance. In the fourth quarter of 2023, BYD outsold Tesla in battery EVs, and by Q1 2025, it delivered over 416,000 all-electric vehicles, surpassing Tesla's nearly 337,000. This marks the second consecutive quarter that BYD has led globally, signaling a significant shift in the market.
BYD's momentum continues as it surpassed a major revenue milestone, reaching over $100 billion in 2024, outpacing Tesla's performance.
With full control over its supply chain, from batteries to semiconductors, BYD holds significant pricing power and strong margins. In contrast, Tesla faces challenges with an aging product lineup and slower demand. With projected Q1 net income of $1.3 billion, BYD seems poised to surpass Tesla and reshape the EV landscape.
BYD Delivered Strong Q4 Results
In Q4 2024, BYD posted a record net income of $2.07 billion, marking a staggering 73% year-over-year jump. The surge was fueled by new energy vehicle (NEV) sales that hit an all-time high, with the company moving 1.52 million units, an impressive 161% increase on a year-over-year basis. This record-breaking performance helped drive revenue to a new peak of $37.89 billion, marking a 53% year-over-year increase.
However, alongside these stellar top=line numbers, there were signs of caution. BYD's gross margin in the fourth quarter slipped to 17%, down 4.8% from the third quarter. This decline was partly due to rising operating costs, exacerbated by an adjustment in accounting practices that now includes increased sales expenses.
The company expects to report net income of $1.3 billion for Q1 at the midpoint.
Analysts Ratings on BYD Stock
Analysts are confident in BYD's future growth prospects. Recently, Jefferies reiterated a 'Buy' rating on BYD with a price target of 447 Hong Kong dollars, citing strong Q1 earnings growth of 86%-119% year-over-year. The analysts also highlighted robust NEV sales, cost efficiencies, and rising export volumes.
Overall, all 6 Wall Street analysts tracked by Barchart rate BYD a unanimous ' Strong Buy.' The average 12-month price target of $123 suggests more than 40% potential upside from the current price.
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"We continue to make meaningful progress on our strategic goal to double gold and silver production by 2030," said Rob McEwen, Chairman and CEO of McEwen Inc."Our focus remains on advancing our development projects and optimizing our existing operations to create long-term value for shareholders." The company is positioning for significant production growth through development of its Los Azules project and optimization of existing silver operations. McEwen maintains a diversified portfolio of precious metals assets with substantial expansion potential across multiple jurisdictions. DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). This content is being distributed for media Corp, who has been paid a fee for an advertising contract with Magma Silver Corp. MIQ has not been paid a fee for Magma Silver Corp. advertising or digital media, but the owner/operators of MIQ also co-own Media Corp. ("BAY") There may also be 3rd parties who may have shares of Magma Silver Corp. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ/BAY does not own any shares of Magma Silver Corp. but reserve the right to buy and sell and will buy and sell shares of Magma Silver Corp. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ on behalf of BAY has been approved by Magma Silver Corp. Technical information relating to and published by Magma Silver Corp. has been reviewed and approved by Jeffrey Reeder, PGeo, a Qualified Person as defined by National Instrument 43-101. 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