BAMCO, Inc. - Baron Emerging Markets Fund on BYD Company Limited
Thesis
BYD is navigating intense domestic EV competition and weak Chinese consumer demand while its international business expands rapidly. Overseas deliveries increased more than 80% year over year and exceeded 40% of total vehicle volume during the quarter. Baron believes cost leadership, vertical integration, premium models, battery technology and exports continue to support the long-term thesis.
“We continue to own the stock”
Key risks
- Domestic price competition
- Weak Chinese consumer demand
- Reduced national purchase incentives