BYD has demonstrated impressive revenue growth, with FY24 revenue increasing by 29% to $107 billion. However, recent trends indicate a moderation in growth, with May 2025 sales growth slowing to 15% YoY. This deceleration, coupled with price cuts of up to 35% on certain models, raises concerns about future revenue sustainability and margin pressure.

BYD's aggressive expansion into international markets, particularly in South Africa and Europe, presents significant growth opportunities. The company's strategy of establishing local production facilities to circumvent tariffs is a positive step. However, the suspension of trade-in subsidies in major Chinese cities and increasing competition in the domestic market pose challenges to maintaining high growth rates.

BYD's stock has shown strong year-to-date gains, leading the auto sector with a 54% increase. However, recent price cuts have negatively impacted investor sentiment, leading to a decline in share prices on the Hong Kong exchange. This volatility underscores the sensitivity of the stock to market conditions and pricing strategies.

BYD faces several risks, including the ongoing price war in China, which is compressing profit margins and potentially leading to unsustainable competition. The suspension of trade-in subsidies in major cities could further slow new car sales. Additionally, geopolitical tensions and potential trade barriers in key markets like the U.S. and Europe pose significant challenges to BYD's global expansion plans.

BYD continues to innovate, introducing the Dolphin Surf in the UK and Europe, and collaborating with Aramco on new energy vehicle technologies. The company's advanced e-Platform 3.0 and Blade battery technology enhance safety and performance. However, a ban on using 'smart driving' terms in auto ads in China reflects increasing regulatory scrutiny of advanced driving assistance systems.

BYD operates in a highly competitive market, facing pressure from both domestic and international automakers. The company's aggressive pricing strategy is intensifying competition, forcing European manufacturers to accelerate the rollout of affordable EVs. However, this strategy also raises concerns about margin pressure and the potential for unsustainable competition.

The Chinese economy's slowdown and trade tensions with the U.S. and Europe significantly impact BYD's prospects. The suspension of trade-in subsidies in major Chinese cities could slow new car sales. Additionally, potential tariffs and trade barriers in key markets pose challenges to BYD's global expansion plans.

BYD's focus on affordable EVs positions it well to capture a significant share of the mass-market segment. The company's expansion into new markets in Africa and Latin America offers additional growth opportunities. However, the influx of low-cost Chinese EVs is increasing pressure on European policymakers and automakers to adapt to preserve market share.

As a Chinese company, BYD faces geopolitical risks, including potential trade restrictions and tariffs. The company's VIE structure and the influence of state ownership add further complexity and uncertainty. Additionally, a dealership closure in Eastern China amid market pressures highlights the challenges of operating in a highly competitive and regulated environment.