Is It Time to Buy BYD Before Its Next Ambitious Move?

As if by magic, BYD (OTC: BYDDY) has swiftly, smoothly, and soundly taken over China's electric vehicle (EV) industry. It surpassed Tesla in 2024 to become the world's largest EV manufacturer by sales, and the automaker isn't pumping the brakes.

For BYD's next magic trick, it's about to make a big push into Europe. But is this a bad time with consumer sentiment there for EVs in decline?

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What have you done for me lately

BYD's efforts in Europe got off to a bit of a sputtering start before it adjusted its sales strategy to focus on more affordable models. That pivot helped it gain traction in key European markets. In April, BYD sold more EVs in Europe than Tesla for the first time, according to a report by JATO Dynamics. Its move into the lead was aided both by Tesla's aging vehicle lineup and by the political adventures of CEO Elon Musk, which turned some consumers off the Tesla brand.

Surpassing Tesla in Europe was a huge accomplishment considering it has led the Continent's battery-electric vehicle (BEV) market for years while BYD only officially began its operations there in late 2022. In fact, despite a slow start, BYD nearly quadrupled European sales during the first four months of 2025, per data from market research firm Dataforce. BYD is increasing its sales by roughly 10% monthly in Europe right now -- a staggering rate of growth.

Can BYD storm Europe?

"If you are winning here, it means you are super good in every angle," said BYD Executive Vice President Stella Li in an interview with Bloomberg News. She also said the automaker would spend up to $20 billion in the region, noting that "Europe is our most important market."

Image source: BYD.

BYD's strategy includes rolling out an ultra-fast charging network across Europe to help drive brand awareness, build market share, and encourage broader consumer confidence in the availability of charging infrastructure. The company's system will be capable of recharging a BYD vehicle for 250 miles to 292 miles of range in as little as five minutes, depending on a few factors.

It also recently launched a new model in Europe that has the potential to be its hottest seller there yet: the Dolphin Surf, a variant of BYD's best-selling EV, the Seagull. The compact vehicle sells for under $10,000 in China and will start at 19,990 euros ($22,700), drastically undercutting other top-selling EVs in the market.

BYD is planning a strong push in Europe, but it could be coming at a less-than-ideal time. In a survey conducted by Shell, the number of respondents in Europe who were considering switching to an EV declined from 48% last year to 41% currently. The primary issue, however, was still price, and that presents an opportunity for BYD.

Time to buy?

China's leading EV maker has come a long way in a short time, but for investors, opening a position at current levels could still prove a great move, as the company has immense upside potential amid its global expansion.

BYD's leading position in China's EV market will one day become more profitable as the industry consolidates and the price war abates. It's gaining traction in Europe quickly, and tariffs might only slow BYD down. And the U.S. market isn't interesting to BYD currently, but one day it's almost certain Chinese automakers will sell in the U.S. market and BYD is likely to be leading the charge.

Those interested in investing in the future of the automotive industry should give BYD a much closer look. Its story is really only beginning, and its potential upside is immense.

Should you invest $1,000 in BYD Company right now?

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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.