{"id":89251,"date":"2023-11-27T10:52:17","date_gmt":"2023-11-27T15:52:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/tesla-and-chinese-rival-byds-649-billion-valuation-gap-unjustified-bernstein-says\/"},"modified":"2023-11-27T10:52:19","modified_gmt":"2023-11-27T15:52:19","slug":"tesla-and-chinese-rival-byds-649-billion-valuation-gap-unjustified-bernstein-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89251","title":{"rendered":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says"},"content":{"rendered":"<div>\n<h2 class=\"topline-heading\">Topline<\/h2>\n<p>Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research note, laying out a case for the peers\u2019 valuations to converge and maintaining its pessimistic outlook for Tesla following the Elon Musk-led firm\u2019s 120% share price surge in 2023.<\/p>\n<h2>Key Facts<\/h2>\n<div class=\"key-facts\">\n<div class=\"key-facts-element\">\n<p>Bernstein\u2019s Toni Sacconaghi and Eunice Lee said they \u201cstruggle to bridge\u201d the valuation gap between Tesla (about $730 billion market capitalization) and BYD ($84 billion market cap) considering the companies\u2019 comparable revenue, EV sales and profits.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Tesla has enjoyed a massive stock rally despite a year-to-date decline in earnings, while BYD shares are up just 12% this year as its profits more than doubled, a perhaps surprising movement fueled by market optimism in Tesla\u2019s ability to grow outside of cars, a narrative largely dismissed by Bernstein as justification for the massive difference in valuation.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>The analysts, who have consistently been among the most bearish on Tesla, correspondingly set a $150 price target for Tesla shares and $46 price target for BYD, implying about 40% downside for Tesla and 60% upside for BYD, questioning why the companies in \u201copposite directions\u201d of growth are still trading at starkly different levels.<\/p>\n<p>  <fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad>\n <\/div>\n<div class=\"key-facts-element\">\n<p>\u201cIn the long term, valuations matter, and, based on fundamentals, valuations between Tesla and BYD are more likely to converge than diverge,\u201d Sacconaghi and Lee wrote.<\/p>\n<\/p><\/div>\n<\/div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key Background<\/h2>\n<p>Berkshire Hathaway, the massive, value-hungry American investment firm backed by billionaire Warren Buffett, owns 8% of BYD shares listed on the Hong Kong Stock Exchange, according to FactSet data, though the firm has significantly trimmed its stake in BYD over the past 15 months. Tesla\u2019s 435 million global EV deliveries during 2023\u2019s third quarter narrowly topped BYD\u2019s 432 million. The companies\u2019 top and bottom lines are further apart, as Tesla has raked in $72 billion of year-to-date revenue and $7.1 billion of net income this year, compared to BYD\u2019s respective marks of $59 billion and $3 billion. China is a crucial market for Tesla, accounting for 22% of all revenue this year, while the battle for market share in the country has spurred Tesla to cut the price of many of its vehicle models, an unpopular move for profit-hungry investors.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Contra<\/h2>\n<p>Bernstein\u2019s rating on Tesla remains far below the average analyst target of $239, about 2% above Tesla\u2019s $234 share price Monday. Much of the rationale for Tesla bulls stems not from optimism in the company\u2019s core EV business, but from the belief that the company\u2019s sum-of-the-parts valuation will skyrocket as other efforts such as its battery charging and controversial autonomous driving units drive growth. \u201cLong term, we think Tesla\u2019s AI value may be under, not over, appreciated,\u201d buy-rated Canaccord Genuity analyst George Gianarikas wrote last month.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\"><\/h2>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/11\/27\/tesla-and-chinese-rival-byds-649-billion-valuation-gap-unjustified-bernstein-says\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research note, laying out a case for the peers\u2019 valuations to converge and maintaining its pessimistic outlook for Tesla following the Elon Musk-led firm\u2019s 120% share price surge in 2023. Key Facts Bernstein\u2019s Toni [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":89252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-89251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=89251\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=89251\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-27T15:52:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-27T15:52:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1701100337_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89251#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89251\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says\",\"datePublished\":\"2023-11-27T15:52:17+00:00\",\"dateModified\":\"2023-11-27T15:52:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89251\"},\"wordCount\":463,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=89251#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89251\",\"url\":\"https:\/\/ifintechworld.com\/?p=89251\",\"name\":\"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-27T15:52:17+00:00\",\"dateModified\":\"2023-11-27T15:52:19+00:00\",\"description\":\"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89251#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=89251\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89251#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld","description":"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=89251","og_locale":"en_US","og_type":"article","og_title":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld","og_description":"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research","og_url":"https:\/\/ifintechworld.com\/?p=89251","og_site_name":"iFintechWorld","article_published_time":"2023-11-27T15:52:17+00:00","article_modified_time":"2023-11-27T15:52:19+00:00","og_image":[{"width":1600,"height":900,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1701100337_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=89251#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=89251"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says","datePublished":"2023-11-27T15:52:17+00:00","dateModified":"2023-11-27T15:52:19+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=89251"},"wordCount":463,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=89251#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=89251","url":"https:\/\/ifintechworld.com\/?p=89251","name":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-27T15:52:17+00:00","dateModified":"2023-11-27T15:52:19+00:00","description":"Topline Chinese electric vehicle giant BYD is a wiser investment than its American counterpart Tesla, Bernstein analysts contended in a Monday research","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=89251#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=89251"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=89251#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Tesla And Chinese Rival BYD\u2019s $649 Billion Valuation Gap Unjustified, Bernstein Says"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=89251"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89251\/revisions"}],"predecessor-version":[{"id":89253,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89251\/revisions\/89253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/89252"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}