After a tumultuous few weeks on Wall Street, one thing has become undeniably clear: Warren Buffett is still the world’s most astute investor. While global markets have plunged, largely due to President Donald Trump’s tariffs, the CEO of Berkshire Hathaway (BRK.B) saw his wealth grow substantially.

In an unprecedented two-day market meltdown in early April, the wealth of the 500 richest individuals on the planet collectively dropped by over half a trillion dollars. But among the top 10 wealthiest people worldwide, Buffett stood apart. He was the only one of the top 10 whose net worth surged, with $11.5 billion added to his fortune since Jan. 1.

Buffett’s prescience is evident in his early investment in BYD (BYDDY). His $230 million gamble on the Chinese electric vehicle (EV) startup, when shares were priced at a mere $1.02, has now transformed into a $2.24 billion stake.

Moreover, despite challenging tariff landscapes in the U.S. and Europe, BYD is finding ways to thrive. The company is strategically building new factories in Hungary, Turkey, and even has plans for a third facility in Germany. 

With BYDDY stock soaring 40.4% year-to-date, the momentum suggests it is well-positioned for a prosperous future.

About BYD Stock

BYD (BYDDY), the Shenzhen-based EV powerhouse, is leading the charge in making EVs more affordable. With a market cap of $141.6 billion, the company has built a strong competitive edge through its vertically integrated supply chain, allowing it to produce its own batteries and motors, cutting costs and staying ahead of rivals.

Over the past 52 weeks, the stock has experienced a 73% surge. In the last three months alone, BYDDY’s stock has jumped 36%, while the S&P 500 Index ($SPX) has seen a decline of 6.7%, demonstrating the company’s resilience even in a challenging market environment.

For investors who share the Oracle of Omaha’s fondness for a good discount, BYDDY is currently trading at 18.62 times forward earnings and 1.33 times sales. These figures, while higher than the industry averages, are still considered a bargain when compared to BYDDY’s own five-year average multiples.

A Closer Look at BYD’s Q4 Earnings

On March 24, BYD unveiled its Q4 2024 earnings. The company’s revenue hit $37.9 billion, marking a 52.7% year-over-year rise, surpassing Wall Street expectations. The surge was largely driven by a significant boost in the sales of new energy vehicles (NEVs). In fact, BYD broke its own record, selling 1.5 million NEVs in the quarter, a 61.3% increase from the last year’s period.

BYD also saw a tremendous leap in its net income, which reached $2.1 billion, soaring 73.1% year-over-year. The company’s operating cash flow in Q4 totaled $10.6 billion, representing 57.8% of its total annual operating cash flow.

Looking ahead, BYD plans to invest up to 60 billion yuan of its idle funds in wealth management products, maximizing returns on its capital. Moreover, BYD’s forecast for Q1 2025 is equally promising. 

The company expects its net profit to range between 8.5 billion yuan and 10 billion yuan, reflecting growth of approximately 86% to 118.9% from the same period last year. EPS is anticipated to fall between 2.91 yuan and 3.42 yuan, a marked rise from the 1.57 yuan reported in Q1 2024.

Analysts are also optimistic about BYD’s future performance, predicting 34.3% growth in EPS for 2025, with the bottom line reaching $5.17. The following year is expected to see a continued upward trajectory, with the EPS projected to grow by 19.5%, reaching $6.18.

What Do Analysts Expect for BYD Stock?

The EV giant’s rising influence has not gone unnoticed. Analysts are placing strong trust in BYD, as evidenced by a consensus rating of “Strong Buy.” All six analysts tracking the stock have given their full endorsement, solidifying its reputation as a solid investment. 

The average price target of $123 represents potential upside of 30% from current levels, indicating that analysts see significant room for growth in BYD's stock.