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Dunne Insights chief executive Michael Dunne continues to see several reasons to hope for further upside in BYD even though the EV stock has already soared some 100% in the trailing 12 months.

For one, the Chinese electric vehicle giant is “achieving the most explosive growth we’ve seen in the auto business in a hundred years,” he told CNBC in a recent interview.

BYD shares have inched down a little in recent sessions only because investors opted to take some profits off the table since “this thing has been on fire,” Dunne added. 

BYD is the world’s third most valuable automaker

Michael Dunne remains incrementally bullish on the future of BYD because its vehicles continue to sell like hotcakes.

The EV maker expects to sell a total of 5 million vehicles this year – up sharply from 400,000 only in 2020.

At the time, it also had zero exports, but now “there’s no market where they’re not, outside of the US and Canada.”

In fact, Shenzhen-based BYD is now the world’s third most valuable automaker, behind Tesla and Toyota only.  

Dunne expects BYD shares to resume their upward trajectory in the coming weeks since “it’s a company that has tremendous momentum” and is growing its top and bottom line at an accelerated pace.

BYD’s revenue surpassed $100 billion before Tesla

BYD stock is attractive also because it continues to threaten Tesla’s dominance in the EV market.

Earlier this week, the Chinese behemoth reported about $107 billion in revenue for 2024 – well ahead of Tesla at less than $98 billion only.

According to its chairman Wang Chuanfu:

BYD has become an industry leader in every sector from batteries, electronics to new energy vehicles, breaking the dominance of foreign brands and reshaping the new landscape of the global market.

Earlier in March, BYD also said its latest technology can charge its vehicles for about 249 miles in just five minutes.

A standard Tesla typically takes 15 minutes, and that is for about 168 miles only.

BYD is challenging Tesla on autonomous features

Dunne recommends owning BYD stock at current levels because it’s “innovating aggressively.”

BYD has recently launched a new DeepSeek-enabled advanced driver assistance system (ADAS) dubbed “God’s Eye”, which many believe may be better than Tesla’s FSD.

Why? Because the firm’s new offering is based on LiDAR sensors versus Tesla’s camera-based approach, which costs more but can still fail to deliver optimal results in low-light or complex urban scenarios.

Note that BYD is a company that, as Charlie Munger (influential investor Warren Buffett’s trusted partner and right-hand man) once said, was “so far ahead of Tesla, it’s ridiculous.”

Wall Street also currently has a consensus “buy” rating on BYD stock.

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