BYD, the Warren Buffett-backed company that surpassed Tesla as the largest maker of electric vehicles last year, is considering buying back twice as many shares as previously suggested in an effort to enhance its share price.
Revised Buyback Plan
The Chinese carmaker stated in an exchange filing that it is contemplating repurchasing 400 million yuan ($56 million) worth of shares. This amount doubles the initial proposal made in December, where they planned to buy back half of this sum.
Latest Developments
BYD shares have experienced a 12% decrease since the beginning of the year. Furthermore, the company recently introduced a new luxury model designed to rival Ferrari, priced at over $200,000 according to reports from the South China Morning Post.
Competitive Landscape
Competition among EV manufacturers has intensified, leading companies like Tesla to reduce prices in an attempt to attract more customers. There is a growing concern within the industry that the market for high-end EVs might be reaching saturation. Li Auto, another Chinese EV manufacturer, saw its first profit but anticipates a decline in sales this year.
Market Reaction
Following the announcement of the buyback plan, BYD's stock rose by 1.5% in Hong Kong trading. Li Auto's American depositary receipts surged by 11% in premarket trading, while Tesla experienced a 0.4% decline. Additionally, Rivian saw a 2.3% increase, and Lucid Group added 1.7%.
Remember to stay informed with the latest updates in the electric vehicle industry for further insights on market trends.
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