Surprise: BYD puts Mexico plans on hold
Tesla's number one competitor is hitting the brakes. BYD has unexpectedly put its ambitious plans for a new factory in Mexico on hold. The company cites geopolitical risks as the reason. But trouble is brewing on other fronts as well. This is not a good omen for the stock, which has already been under pressure recently.
It's news that makes people sit up and take notice: BYD, the Chinese giant that has already overtaken Tesla in electric car sales, is pulling the plug in North America. Plans for a large factory in Mexico have been halted for the time being. The company's headquarters explained that they are waiting for more political clarity.
Since Donald Trump's return to the political stage, a sword of Damocles has been hanging over the North American auto trade. The 25 percent punitive tariffs on vehicles produced in Mexico are anything but beneficial for companies like BYD. While the company intends to continue expanding in North or South America, company sources say, Vice President Stella Li says: "We are waiting for more clarity."
Dark clouds in BrazilWhile Mexico is at a standstill, expansion in Brazil is in full swing – but here, too, the sky is dramatically darkening. Serious allegations have been made against a supplier at the construction site of the new plant in the state of Bahia. There is talk of "slave-like conditions" for over 160 workers. Wages were allegedly withheld and ID cards confiscated. A scandal that could massively damage the image of the up-and-coming company.
Although BYD has promised immediate clarification and consequences, the damage has already been done. Vice President Li admitted that international expansion must be approached more cautiously. "We should not just focus on speed, but also work more closely with local partners," Li said.
Operationally still topThis presents a mixed picture for investors. From a purely operational perspective, BYD continues to perform well. In Europe, it has already overtaken its competitor Tesla in sales of pure electric vehicles, forecasts massive sales of over five million vehicles for 2025, and the stock itself has gained around 16 percent since the beginning of the year.
BYD's story remains impressive. The company is a technological leader and growing rapidly. While the recent news from Mexico and Brazil is unpleasant, it is by no means a cause for panic. Investors remain on board.
A Tesla Motors insider tells the story of the most revolutionary automaker since Ford and the man who led it to success. Hamish McKenzie shows how, under Elon Musk's "Insane Mode" leadership, the end of an era—that of gasoline engines—was ushered in. Musk's vision and his cars are driving virtually every other manufacturer in the industry ahead of him. Tesla is the benchmark when it comes to electric mobility. This isn't just the story of an incredibly groundbreaking car brand—it's the story of an unwavering visionary and a new era, fast-paced and insightful.
deraktionaer.de
