BYD, a global leader in electric vehicles, faces competition that pressures profit margins. The company does most of its business in China, where it recently lost market share to new entrants like Geely and SAIC. This competition led to a 33% drop in third-quarter profits.

BYD sets itself apart by handling most of its manufacturing work internally, including making its own lithium-ion batteries and owning boats for overseas transport. Despite facing pricing pressure from competitors, the company’s strategic independence and nimbleness give it an edge in the electric vehicle market.

Although Tesla remains a well-known name, BYD has outsold Tesla on a worldwide basis for four consecutive quarters. With its efficient production and delivery processes, BYD is poised to widen its lead over competitors, despite facing challenges in the Chinese market.

Investors considering BYD should note that the company’s profitability was affected by increased competition in the electric vehicle market. Financial analysts expect electrified vehicles to dominate China’s market by 2034, but BYD will need to navigate pricing pressures and maintain profit margins in the face of fierce competition.

Read more at Yahoo Finance: 3 Things Every BYD Investor Needs to Know