BYD Shares Gain Momentum Amid Ford Battery Talks and New Model Reveals

BYD CNE100000296

Reports of potential battery supply negotiations with Ford Motor Company provided a lift to BYD's stock on Thursday. The Chinese electric vehicle giant simultaneously unveiled plans for several new flagship models, highlighting its continued expansion. Market observers are weighing the significance of a possible deal with the American automaker and identifying near-term catalysts for the equity.

Trading on the Hong Kong exchange, BYD shares advanced as much as 2.5% intraday, reaching a high of HK$101.60. The stock outperformed the broader Hang Seng Index. Over the past five trading sessions, the equity has posted a weekly gain of approximately 5%. It fluctuated between HK$98.95 and HK$101.60 before closing near HK$98.95.

Ford Negotiations Take Center Stage

According to a Thursday report from The Wall Street Journal, Ford is actively engaged in discussions with BYD regarding the procurement of batteries for certain hybrid vehicle lines. Sources familiar with the matter indicated that several contractual options are under evaluation. One potential structure involves Ford importing BYD battery packs for assembly at manufacturing plants located outside the United States.

Possible supply destinations under discussion include Ford facilities in Germany, Spain, Thailand, Turkey, and other major international production sites. A Ford representative confirmed the company is in talks with various suppliers but declined to provide specifics. BYD has not publicly commented on the reports.

Political Opposition Emerges in Washington

News of the potential partnership drew immediate criticism from U.S. political figures. White House trade advisor Peter Navarro criticized the plan on social media, questioning the wisdom of Ford simultaneously strengthening a Chinese supply chain and becoming dependent on it.

John Moolenaar, the Republican chairman of the House Select Committee on the Chinese Communist Party, stated that Ford should collaborate with "allies, not adversaries." He expressed the view that a partnership with BYD would tarnish Ford's standing as an iconic American brand.

Strategic Implications for Both Companies

A supply agreement with Ford could open a significant additional revenue stream for BYD. Originally founded as a battery manufacturer, BYD is now the world's largest seller of electric vehicles. Its battery division would benefit from increased capacity utilization, as hybrid vehicle batteries, though smaller than those for pure EVs, are typically produced in very high volumes.

Ford has recently sharpened its strategic focus on hybrid vehicles. In December 2025, the company recorded a $19.5 billion impairment charge and discontinued several pure-electric models, including the F-150 Lightning, reflecting softened demand for fully electric cars in North America. The automaker's revised roadmap emphasizes hybrids and vehicles with extended electric range.

The two companies are not strangers; an existing operational link was established in 2020. The Changan Ford joint venture in China has been utilizing BYD batteries for vehicles sold in the local market.

Upcoming Model Launches from BYD

Separate from the Ford discussions, BYD announced two new premium models yesterday: the Seal 08 sedan and the Sealion 08 SUV from its Ocean series. Both are positioned as flagship offerings, with market launches scheduled for the first quarter of 2026.

Furthermore, BYD previewed the Tang 9 SUV and the Han 9 sedan from its Dynasty series. Official debuts for these models are planned for the first half of 2026. This product offensive follows a record-breaking 2025, during which BYD sold more than 2.25 million pure electric vehicles, surpassing Tesla's global sales by over 600,000 units.

Valuation and Forward Outlook

Market experts maintain a generally positive stance. The consensus average 12-month price target for BYD stock stands at HK$132.59, notably above current trading levels. The company's current valuation metrics include a forward price-to-earnings ratio of approximately 16.3 and a price-to-sales ratio of 1.25.

Two key factors are seen as primary drivers for the stock in the coming months. The first is the progression and potential formalization of battery supply talks with Ford. The second is the upcoming earnings release scheduled for March 26, 2026, where the market is expected to scrutinize the outlook for the battery division closely. From a technical analysis perspective, the shares face resistance in the HK$101 to HK$102 range, with the next support zone situated around HK$96.