China EV Maker BYD Burning Billions in Cash

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BYD has another quarter of billions in quarterly negative free cash flow. BYD is the major competitor to Tesla for the number of electric vehicles they make. In the fourth quarter of 2023, BYD made more electric cars than Tesla but since then Tesla has retaken the lead in electric car production.

BYD is selling about 3 million hybrid and all electric cars and over 90% of those sales in China.

BYD’s second quarter did have about 10 billion RMB in net income. This is about US$1.3 billion in net income.

A company with positive net income but negative cash flow is not necessarily in trouble, but it does face challenges. This situation often occurs in growing businesses or those experiencing significant changes in working capital. However, if this pattern persists, it could indicate underlying issues with the company’s business model or financial management.

7 thoughts on “China EV Maker BYD Burning Billions in Cash”

  1. They will be ok, they recently became the world’s 7th largest automaker, recording 40% growth in sales in the Q2 2024. I am pretty confident they will become nr 1 next year or in 2026.

  2. And all that investment is slowly paying off, as they are eclipsing Tesla in China, and soon, in other parts of the world, unless various idiot governments pull any anti-consumer tariffs nonsense. Just like solar panels and other aspects of clean energy that we need to move forward, I say let the Chinese government directly subsidize the American middle class through giving them cheap EVs. That is the end result of their subsidizing—cheaper cars for Americans. Where do I sign on the dotted line?

      • For strategically important 1920s automotive technology?

        What strategically important things have US automakers (other than Tesla) invented in the last 30 years.

        US production by domestic brands is important for votes because of some jobs in swing states. Other than that, the industry is kinda a big nothingburger.

      • This is where I remind you about the CHIPs Science Act, and the IRA Act if you’re worried about security. It takes critical engineering, technology, materials, manufacturing, and other things that China currently has a stranglehold on and brings it back to the US. There is your jobs, there’s your security fears, there’s your manufacturing base.

          • Figures, based on your comments, that you are either a Dem or a China bot.

            All Biden has done is weaken America… in about every way conceivable.

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