Byd’s actions are still booming while Tesla’s titles continue to fall

Key points

• The BYD electric vehicle manufacturer has seen the price of its shares increase approximately 50% so far this year.

• Tesla’s shares were falling on Tuesday, lowering 5%.

• Two important Wall Street analysts reduced the target price of Tesla.

Tesla’s actions fell another 5% on Tuesday.

There has been a change of guard in the electric vehicle industry, since the Chinese car company Byd (OTC: Byddy) surpassed Tesla (Nasdaq: TSLA) earlier this year as the largest electric vehicle manufacturer, according to statist.

Since then, the two rival manufacturers of electric vehicles have taken opposite directions, since Byd’s actions have increased while Tesla’s actions have fallen.

Byd was going up again this week after the company presented a new fast charge platform called Super E-Platform. The Super E-Platform has loading speeds of up to 1,000 kilowatts, which would fill its electric vehicles in 5 minutes and make them work for approximately 250 miles. That is faster than its rivals, including Tesla.

“To completely resolve user anxiety about the load, our search is to make the load time of electric vehicles as short as the refueling time of fuel vehicles,” said Wang Chuanfu, founder of ByD, according to the Associated Press (AP).

The supercargae platform will be offered first for the two new byd models: the sedan Han L and the SUV Tang L. plans to build more than 4,000 ultra -granted load stations throughout China.

“It is heartbreaking, suffocating, traumatic, distressing, agonizing, exciting, painful for competition, especially for foreign car manufacturers,” Xing Lei wrote, an electric vehicle market analyst, on LinkedIn.

In addition to the news of the fast charger, Byd is looking to expand in Europe, since it plans to open a new plant in Germany, According to Electrek.

Byd shares have risen 14% in the last five days and 50% so far this year, quoting around $ 103 per share. It has a reasonable assessment, although slightly elevated, with a 31 and a future of 23.

Analysts reduce the target price of Tesla

Tesla’s actions, on the other hand, are not only facing potholes, have stagnated. The action fell approximately 5% on Monday and Tuesday, after the opening bell, continued in free fall, lowering another 5%.

Since last Friday, when it closed about $ 250 per share, it has fallen 10% to around $ 225 per share. Tesla’s shares have now fallen about 43% so far this year.

The last negative catalyst is the news of Europe and China that sales are collapsing, which has led analysts to reduce their objective prices.

This week, Wells Fargo analyst, Colin Langan, reduced the target price of Tesla to $ 130 per share, from $ 135. That would represent another 42% drop, in addition to the 43% drop they have seen so far this year. Wells Fargo said demand has decreased considerably for Tesla, since sales in Europe have dropped 40% so far this year, MSN reported.

On Tuesday, the catalyst for the drop in price was a report of the publication of Electrek electric vehicles that indicated that sales are in the year -on -year trend in China in the first quarter.

Wells Fargo is not the only important Wall Street bank that has a bearish vision on Tesla’s actions. Last week, JPMorgan Chase reduced its target price for Tesla to $ 120 per share, a 47% drop from the current price. JPMorgan analysts estimate that total deliveries in the first quarter will be 20% less than originally projected.

“It is hard for us to think about something analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” said the firm on Tesla, Evs said.

In addition to his concerns about the brand and sales, an important problem for Tesla is that it is still very overvalued, even after this precipitated fall, with an extremely high per period of 116.