BYD's earnings spell more bad news for Tesla
Chinese automaker BYD (BYDDY) said its net profit doubled year-over-year in the first quarter, climbing to 9.15 billion yuan, or about $1.3 billion.
The company, China's biggest carmaker, said operating revenues jumped 37% year-over-year to 170.4 billion yuan, or roughly $23.3 billion, according to Business Insider. Earnings increased 99% to 3.12 yuan per share, or around $0.43.
BYD's earnings blew Tesla's (TSLA) out of the water. Elon Musk's firm reported a 70% net-revenue drop to $409 million in the first quarter. BYD had already overtaken Tesla on overall annual revenue last year when it reported $107 billion in revenue compared to Tesla's $98 billion.
BYD's sales have pulled strongly ahead of Tesla's despite its vehicles not being available in the U.S. Sales rose 60% in the first quarter, while Tesla deliveries came in well below Wall Street's expectations. The Chinese automaker previously said it sold more than 318,000 passenger vehicles in February, up 161% year-over-year.
Tesla's sales have plummeted in the face of consumer discontent over Musk's role in the Department of Government Efficiency. Sales of both new and used cars are down, while protestors have targeted the company's vehicles and facilities.
On Wednesday, Tesla reported its lowest first-quarter revenue in three years — $19.3 billion, which was down 9% compared with the same period last year. The company reported that net income sank 71%, and its earnings were a double miss in both adjusted earnings-per-share and revenue. Total auto revenue fell 20% year-over-year during the period.
Tesla also has seen its technology get lapped by BYD's advances in recent months. In March, BYD announced a new charging system that can give cars 292 miles of range in five minutes, or slightly longer than it takes to fuel up a gas-powered car. By comparison, Tesla's Superchargers can add 171 miles in 15 minutes. BYD's 1,000 kW chargers are four times as powerful as Tesla's current chargers, though Tesla has said it plans to roll out 500 kW chargers later this year.
Despite its poor earnings and dreary sales figures, Tesla's stock is on the rise this week after Musk recommitted himself to his CEO role. Wedbush Securities analyst Dan Ives said in an analyst note this week that this was a 'turning point' for the automaker as the CEO looks to 'turn the corner from this dark chapter.'
Ives wrote that the move was an off-ramp 'out of the Trump White House in our view as the global brand damage, political firestorm, and perfect storm chaos over the past few months' will come to an end.
—Shannon Carroll and William Gavin contributed to this article.
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