This Shocking Company Just Passed Ford -- and Its Sales Could More Than Double

When Tesla energized the entire electric vehicle (EV) industry, investors weren't sure whether another company could match its expansion rate. It was commonplace for headlines and analysts to ask: Is (insert name of EV maker) the next Tesla? It turns out, there was indeed a similarly impressive EV maker out there growing rapidly: BYD (OTC: BYDDY). BYD has quickly climbed the leaderboard of the world's best-selling automakers, not just in EVs, and it believes it can more than double its sales.

Image source: BYD Co.

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What's going on?

It seems like it was only yesterday that BYD switched to selling only electric vehicles (EVs), including plug-in hybrids, in 2022, and its rapid growth has been quite impressive. It overtook Tesla last year to become the top-selling global EV maker, but more impressive was that it also overtook Ford Motor Company (NYSE: F) in global automotive sales on its way to recording 4.6 million vehicles sold, good enough to become the sixth-largest automaker by that measure.

Further, BYD's 7.7% growth in global sales last year outpaced every automaker ranked ahead of it, and it just told investors it plans to close the gap with the No. 1 leader, Toyota Motor (NYSE: TM). Per BYD's CEO, Wang Chuanfu, China's EV juggernaut plans to continue accelerating sales over the next few years, largely driven by new battery and charging technology. As Chuanfu addressed shareholders at BYD's recent annual meeting, he noted, "BYD will truly become the No. 1 automaker globally in terms of scale in five years."

Reach for the stars, as they say, because Toyota has a commanding grip on the top spot, selling 11.3 million vehicles in 2025, more than twice the amount BYD managed. There's no question the Chinese EV maker has momentum as it continues to take market share from major global automakers in regions such as Europe, Southeast Asia, Australia, Mexico, and Brazil.

The belief stems from BYD's recent breakthroughs in its Blade Battery 2.0 and Flash Charging technologies, which debuted in March. Already, BYD has seen a noticeable increase in demand for vehicle orders equipped with these tech upgrades. In fact, BYD's CEO also noted in May that demand has exceeded the company's battery production capacity as some vehicle models are generating over 100,000 orders.

Why BYD stock is still a buy

BYD is more than just sales momentum, too. The EV maker is vertically integrated and uniquely makes almost everything for its vehicles in-house, including batteries (which remain the most expensive component of EVs), electric motors, drivetrains, electronic control systems, infotainment systems, and software -- it's the whole kit and caboodle. That helps the EV giant keep costs low and profitability strong. Combined with its sales momentum, BYD isn't the next Tesla; it's its own animal, and savvy investors are jumping on board.

Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.