This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BYD Auto Targets U.S. Debut for 2012

NEW YORK ( TheStreet) - On Monday, I sat down with Paul Lin, a spokesman, for BYD Auto Company Ltd at the Detroit Auto Show. He revealed to me that the company is planning on coming to America in 2012. It's time for American investors to start playing closer attention to this company.

In some ways, BYD -- which stands for "Build Your Dreams" -- is the least known company that most people know Warren Buffett has invested in. The best known investor in the world discovered the company a few years ago and took a big stake.

Part of the reason why BYD still has a low profile is that the stock isn't traded over here -- only in Hong Kong under the ticker "1211." What doesn't trade here tends to be overlooked, whether it's Tencent Holdings in the China's Internet space (which has a bigger market capitalization than Baidu (BIDU) or BYD in the auto space.

At the time of Buffett's investment, the Chinese auto market wasn't on the radar of most investors. Today, it's the biggest in the world, surpassing the U.S. last year with no signs of slowing down. Although there is enormous competition in the market, including a strong presence from Toyota (TM - Get Report), Volkswagen, and General Motors (GM - Get Report), BYD is a hometown success story.

The Shenzhen-based company has decided to bring its E6 electric-powered compact to the U.S. market in the first quarter of 2012. It showed off the vehicle and several of the other electric-based cars in Detroit this week. The company has no specific targets on the number of vehicles they want to sell here in 2012 and 2013, but they clearly have global ambitions and aren't satisfied with simply selling their cars in China.

The company sees its biggest competition for the E6 in the U.S. coming from the Nissan Leaf. BYD believes that the E6 will have much better range (i.e., how far the car will drive when fully charged) and an attractive price. It hasn't released pricing for the U.S., but the E6 sells for between US $22,000 to U.S. $25,000 in China after government rebates have been applied.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BYD $16.46 2.60%
GM $29.00 1.50%
MMI $43.34 0.12%
LAS $0.15 -16.67%
TM $120.77 1.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs