Competition
is
fierce
in
the
electric
vehicle
industry,
with
investor
favorite
Tesla
competing
with
a
slew
of
Chinese
rivals.
But
Jason
Hsu,
chairman
and
chief
investment
officer
of
Rayliant
Global
Advisors,
believes
that
one
stock
will
come
out
ahead.
That’s
Hong
Kong-listed
BYD
,
which
he
has
declared
“the
next
Toyota.”
“I
think
BYD
[is]
certainly
kind
of
the
low
cost
leader
in
terms
of
scale,
production,
in
terms
of
technology,
in
terms
of
maturity.
So
we
like
it
in
the
long
run,”
he
told
CNBC’s
”
Street
Signs
Asia
.”
Hsu
believes
that
as
the
EV
market
consolidates,
BYD
is
“for
sure
going
to
emerge
a
winner.”
“I
think
in
three
to
five
years,
I
could
easily
see
BYD
at
twice
the
current
price,”
he
said.
In
January, data
showed
that
BYD
dethroned
Tesla
in
the
fourth
quarter
as
the
top
EV
maker
globally,
and
also
surpassed
Tesla’s
production
for
a
second
straight
year
in
2023.
BYD
is
now
expanding
aggressively
overseas
after
dominating
its
domestic
market
in
China.
Like
Tesla,
it’s
going
beyond
selling
cars
and
manufacturing
its
own
batteries
and
other
components
to
stay
competitive.
Competition
for
China’s
electric
car
market
will
continue
to
heat
up
in
the
next
two
to
three
years,
pushing
prices
down,
BYD
said
last
week.
One
potential
curveball
for
the
Chinese
EV
market
is
a
U.S.
decision
to
raise
tariffs,
which
is
reportedly
under
discussion
.
But
Hsu
believes
that
the
markets
have
already
priced
in
the
possibility
that
those
tariff
hikes
will
be
imposed.
He
also
pointed
out
that
Toyota
went
through
a
similar
challenge
to
build
its
share
in
the
U.S.
and
Europe
markets
—
and
feels
that
BYD
can
“find
their
way”
as
well.
According
to
FactSet,
analysts
covering
the
stock
give
it
potential
upside
of
81.1%
to
the
average
price
target,
with
94%
giving
it
a
buy
rating.
For
global
investors
who
want
to
buy
BYD,
its
shares
are
listed
on
the
Hong
Kong
exchange.
Alternatively,
they
can
buy
them
via
an
ETF.
BYD
takes
up
7.9%
of
the
KraneShares
MSCI
China
Clean
Technology
Index
ETF
and
7.3%
of
the
CoreValues
Alpha
Greater
China
Growth
ETF.
—
CNBC’s
Tanvir
Gill
and
Evelyn
Cheng
contributed
to
this
report.
