Chinese automaker BYD Company Limited BYDDF, which has the backing of billionaire investor Warren Buffett, is now officially the third most valued global automaker.
What Happened: BYD's Shenzhen-listed shares closed Monday's session up 4.78%, giving it a market capitalization of 905.365 billion yuan ($141.78 billion). The company has wrested the third position from German auto giant Volkswagen AG VWAGY.
Volkswagen shares were trading down 0.21% Monday and its market capitalization at press time was 118.648 billion euros ($133.49 billion).
BYD is now only behind EV pioneer Tesla, Inc. TSLA and Japanese auto giant Toyota Motor Corporation TM in terms of valuation.
Related Link: Nio, XPeng, Buffett-Backed BYD Among Top Quality EV Brands In China: Survey
Why It's Important: BYD, founded in 1995, is focused on providing zero-emission energy solutions. Its product portfolio includes passenger vehicles, commercial vehicles, EV batteries and electronics.
It started out a traditional automaker but seamlessly transitioned into EV manufacturing. In October, the company sold 81,040 new energy vehicles, comprising battery EVs and plug-in hybrid vehicles, a 249% year-over-year increase. Oil-fueled vehicle sales was a small proportion at 8,895, down sharply from 24,515 vehicles sold a year ago.
In comparison, Tesla's wholesale sales in China were at 54,391 units, of which 40,066 units were exported and 13,725 units were sold in China.
Monday, BYD announced it has delivered first of its five new-gen 12-meter pure electric eBuses to Germany's largest public transport operator Deutsche Bahn. The company is also expanding operations in India, a market which offers huge potential. In early November, the company's Indian unit launched the "e6," its electric multi-utility vehicle.
BYD is also among the top five global EV battery manufacturers.
At last check, OTC-listed BYD shares were rallying 4.93% at $40.45.
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