Key facts
- Geopolitics is the number one challenge to BYD's expansion, according to executive VP Stella Li.
- BYD is not selling passenger cars in the U.S. currently due to market complexity.
- BYD sees its stock as undervalued compared to U.S. companies.
- Nvidia is a strong chips partner for BYD.
Geopolitical uncertainty is the primary obstacle to BYD's global expansion, according to Stella Li, the company's executive vice president. Speaking at the Milken Institute Asia Summit in Singapore, Li explained that unpredictable geopolitical factors make it difficult to invest with certainty and visibility.
Consequently, BYD has decided to hold back on selling passenger cars in the U.S. for the time being, despite having a presence in the country for a long time. Li cited a lack of clarity, visibility, and stability in the U.S. market as reasons for this decision.
Li also highlighted BYD's diverse business interests beyond automotive manufacturing, stating the company is a leader in areas such as storage and solar panels. She noted that hiring sufficient personnel in China has been challenging, leading the company to consider using industrial robots in the future. Regarding its stock performance, Li commented that BYD's shares on the Hong Kong exchange are "super undervalued" relative to U.S. companies, given its identity as an engineering firm rather than solely a car manufacturer. She also confirmed that Nvidia continues to be a strong partner for BYD's chip needs.