Chinese EV maker BYD announces share sale, floats Tesla collaboration

BYD announced on Tuesday that it had raised $5.6 billion (€5.3bn) in one of the largest share sales in Hong Kong – and the biggest in the past four years.

The funds are expected to be used to drive BYD’s growth in international markets. The company is currently working on establishing local manufacturing facilities in Turkey, Hungary and Brazil.

BYD sold 129.8 million shares at HK$335.20 (€40.9) a share, which is an 8% discount compared to Monday’s closing price.

Euronews has reached out to BYD for a comment.

BYD has expressed support for working with Tesla.

In a chat with the Financial Times, BYD also revealed that it plans to team up with competitor Tesla to help cut down the number of petrol cars on the road.

“Our biggest foe is the internal combustion engine car. We need to join forces…to make the industry switch,” said executive vice-president Stella Li.

Although the two carmakers are vying for top spot in the electric vehicle market, Li stated that BYD is still open to sharing its technologies with foreign companies.

She mentioned autonomous driving software and electric vehicle technology.

This offer to team up comes despite rising diplomatic tensions between China and the US.

BYD has been trying to gradually boost its market share in Europe over the past few years by offering relatively cheaper models compared to several European electric vehicle manufacturers.

The company’s advanced battery technology, such as its blade battery, has also been a factor in higher demand in the EU.

This is a type of lithium iron phosphate (LFP) battery, which has improved cooling efficiency and higher energy density. As a result, electric vehicles have a better range.

Tesla sales in Europe

On the other hand, Tesla’s European sales have been struggling, which some analysts have partly attributed to CEO Elon Musk’s increasing involvement in politics.

This includes his support for far-right parties such as the Alternative for Germany party, as well as his association with US President Donald Trump.

There’s a growing emphasis on hybrid vehicles.

Late last year, the European Union slapped tariffs on Chinese electric vehicles coming into the region, accusing the Chinese government of unfairly helping out local EV companies.

This has resulted in BYD being slugged an additional 17% tariff, on top of the existing 10% levy.

Automaker Geely is dealing with a levy of 18.8%, while Chinese state-owned car manufacturer SAIC Group has also copped a 35.3% tariff.

This is, again, on top of the standard 10% tariff that the EU imposes on all car imports coming into the country.

Australian Government levies have raised concerns about Chinese electric vehicle sales potentially suffering in the coming months, as these tariffs may significantly increase model prices.

However, this has also encouraged a few Chinese EV makers to focus more on hybrid vehicles, which aren’t included in the current tariffs, in an effort to hold onto their European market share.