BYD financial reports do not offer enough detail to tell profitability fo any given product line. Since they are so diverse, with trains, busses, trucks, cars, batteries and more, detailed product line information would be highly desirable. Notably, their financial condition does not reflect anything resembling TSLA-style conservatism. To simplify the results just glance at Yahoo Finance can flow statement:
Understand the cash flow statement for BYD Company Limited (1211.HK), learn where the money comes from and how the company spends it.
finance.yahoo.com
As that shows clearly, product line profitability is the least of the issues. The late Charlie Munger really ignored all the famed Berkshire financial acuity on this one! Much is positive about BYD, specifically their quite good batteries that Tesla buys and their very good electric busses, including their diverse cars. However, their financial structure shows good access to funding but minimal concern for cash flow or leverage. They'll thrive and survive so long as their access to funding continues unabated.
Every year end I do a BYD review as I do for several potential investments. Each time I realize that product line profitability or not is the least of the issues. BYD is pursuing new markets and geographies very aggressively, always with easy capital access but singly never with concern for conventional financial resilience.
FWIW, quite similar characteristics were present for Toyota in the 1960's and later, Hyundai in the 1970's and later, among others. The seemingly imprudent financial structure may not be any more an issue for BYD as it was for Toyota and Hyundai. In all three of those and others, because the financial and operating character of Japanese, Korean and Chinese conglomerates is fundamentally different than are those of the Western hemisphere the risks are themselves quite different.
This all makes TSLA all the more amazingly unique. I choose that word, unique, purposefully. We all compare TSLA with other investment options. That is difficult because both Tesla and SpaceX have done things and are doing things that are unprecedented. When we try to see them in conventional eyes our eyes deceive us. One of the primary reasons for all that volatility and all that shorting is that conventionally Tesla should never have existed much less thrived.
Now, as I am doing my annual review I am struck by how little some of the more flamboyantly unconventional behavior by our CEO matters. Obviously much is distracting and some is offense to many of us. Then when examining in cold rationality what is happening I am astounded to realize that the innovation continues unabated. The operating environment in Tesla foments further innovation. Oddly, perhaps, I end this volatile and controversial year reaffirming my conviction that TSLA should remain as it is, one of my largest holdings.
The nearest OEM to Tesla's range is BYD, with perhaps BMW and Hyundai/Kia next for cars only, and VAG as a factor if they survive as is. Otherwise there only GWM, Geely and, in the EU at least, Stellantis. I posted a bit about BYD today. Each of those others have huge legacy impediments, including GWM which has a legacy as a Magna-style Tier One and contract manufacturer. All in all, none are really approaching Tesla overall.
Finally, Magna remains unremarked, mostly but they do have BEV technologies and are expanding those:
www.magna.com
It is easy to ignore Magna but they are very skilled at contract manufacturing and they are becoming adept at EV technology. Remember the IPace, built by Magna-Steyr and very successful initially although JLR left them static while others evolved. Still, we need to monitor Magna. Few may remember that long ago in 2015:
Deal includes production and development sites and contracts
www.theglobeandmail.com
Magna-Steyr and the Canadian operations have continued investments after that.
What devlopments are next? I fully expect that some (e.g. GM, Ford, Stelantis) will be using Magna for innovation and smaller volume production. Since Magna-Steyr already has made cars for nearly every EU OEM I fully expect the EV model ranges will have Magna products appearing soon.
With those developments and:
Magna Enhances ADAS Capabilities by Joining 5G Innovation Program
Magna remains regularly as a potential investment. I have been in and out of MGA from time to time, less deeply because fo continuing issues of corporate control.
So from year end perspective I once again decide the TSLA future is bright, so I'll stay as is, HODL.
MGA might well reappear in my sights depending on the next few months.
This was all is response to BYD, of which I had just completed my review and decided to remain a watcher, not an investor. Too much unmitigated risk for me!
(philw1776 bold & icon)
