The Warren Buffett-backed Chinese new energy vehicle giant is also in Cathie Wood's holdings.
(BYD Seal. Image credit: BYD)
BlackRock appears to be interested in a potential investment in BYD, as a meeting minutes from the latter reveal that the world's largest asset manager had a communication with its management.
BlackRock fund manager Reid Menge and analysts including Tomas Hamudis, spoke with BYD by conference call on April 12, according to minutes released by the Warren Buffett-backed Chinese new energy vehicle (NEV) giant on April 13.
Below is a translated version of the Q&A from the minutes, and the original Chinese text can be viewed by clicking here.
Question 1: What is the significance of BYD's release of the DM-i super hybrid system?
A: The DM-i super hybrid system is BYD's masterpiece based on years of technology accumulation and will play the role of a fuel car disruptor.
Its emergence is a supply-side reform of the auto market, with the ability to change the consumption structure of China's auto market and accelerate the realization of the dream of green mobility.
The company hopes to make the DM-i super hybrid system enter a segment where traditional fuel cars are absolutely dominant, creating a blue ocean market in a red sea.
Question 2: How is the DM-i super hybrid system being used in BYD models?
A: The models equipped with DM-i super hybrid system have received wide attention and praise since their launch last year, and BYD has a full order book for these models.
To further enrich the product matrix and provide consumers with more suitable choices, the company has launched DM-i super hybrid system-equipped models in the Dynasty network, including the Song pro DM-i.
BYD's Ocean network will also launch a number of models in the warship series with DM-i super hybrid to help the company further boost sales.
Question 3: What is BYD's current passenger car sales system?
A: BYD's passenger cars are currently sold through the Dynasty network and the Ocean network, with the Dynasty network including the Qin, Tang, Song, Yuan and Han series of pure electric and hybrid models, and the Ocean network with the marine creature series focusing on pure electric vehicles and the warship series using the DM-i super hybrid system.
Question 4: What is the status of BYD's commercial vehicles?
A: BYD commercial vehicles are expanding their market and building its brand with more competitive products and services to promote sustainable development of global transportation.
Question 5: What is the status of BYD's cooperation with Nuro?
A: On January 12, 2022 local time, the third generation of pure electric driverless delivery vehicle jointly developed and designed by BYD and the US startup company Nuro was officially unveiled.
The project was launched in August 2019 and is scheduled for mass production in early 2023, which will provide smarter and more environmentally friendly delivery services to local consumers.
The above is the full Q&A from the BYD meeting minutes, and CnEVPost would like to provide more context.
BYD received an investment from Warren Buffett years ago, and the ETF managed by Cathie Wood, founder and CEO of ARK Invest, also holds shares of the company's BYD stock (OTCMKTS: BYDDY) traded on the US over-the-counter market, and has increased its position over the past few months.
As of April 13, Wood's ARK Autonomous Tech. & Robotics ETF (ARKQ) held 478,831 BYD shares with a market value of about $27 million, or 1.79 percent of the ETF's position.
BYD sold more than 100,000 NEVs for the first time in March and announced that the company has stopped producing internal combustion engine vehicles and is switching to NEVs entirely.
The company announced its main goals for the year in early February, the first of which is to serve 3 million NEV customers.
BYD did not directly mention this year's sales target at the time, but considering its cumulative sales of about 1.51 million new energy passenger vehicles by the end of 2021, that means the company is aiming for about 1.5 million NEVs this year, up 153 percent from the 593,700 units it sold in 2021.