Chinese EV Maker BYD Gains Momentum from Multiple Fronts
11.02.2026 - 04:19:04
Shares of Chinese electric vehicle manufacturer BYD advanced by approximately 2.4% in Hong Kong trading yesterday. The positive movement comes as the company benefits from supportive government signals, pursues legal action in the United States, and continues its international model rollout.
In a notable move to challenge American trade policy, BYD's US subsidiaries filed a lawsuit at the end of January with the relevant Court of International Trade. The legal action seeks to overturn import tariffs established during the Trump administration and to secure a refund for duties already paid. This legal offensive represents a direct confrontation with existing US trade measures.
Concurrently, market analysts have expressed confidence in the company's valuation. On February 9, HSBC Research reaffirmed its buy rating for BYD stock, setting a price target of 139 Hong Kong dollars. The analysts pointed to an unjustified valuation gap between BYD and its competitors, highlighting the firm's robust financial position.
Government Pledges Sector Support
The company's domestic outlook received a boost from recent policy announcements. During a meeting with automakers in early February, China's Ministry of Commerce pledged concrete measures to strengthen the automotive sector. Vice Minister Sheng Qiuping promised enhancements to vehicle trade-in programs and pilot reforms in auto sales.
Should investors sell immediately? Or is it worth buying BYD?
These signals from Beijing are timely, as the government aims to better integrate existing and new incentive measures to stimulate automobile consumption. For BYD and other domestic manufacturers, this translates to more stable framework conditions within their home market.
Expansion Drive Continues in Australia
On the operational front, BYD is pushing ahead with its global expansion strategy. The company is introducing the Sealion 5, a plug-in hybrid SUV, to the Australian market this month. This model launch is part of a comprehensive product offensive designed to significantly expand the conglomerate's footprint in Australia.
The confluence of state backing, legal maneuvers, and fresh model releases currently provides BYD with multiple avenues for sustained growth. The coming weeks will indicate whether this positive momentum can solidify further.
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