Large Overseas Electric Bus Order Drives BYD Stock to Record Highs

The deal will allow BYD to deliver an additional 1,002-pure-electric busses to Bogotá.
Anthony RussoJan 11,2021,18:08

Shares of BYD Company Ltd. (HKEX: 01211; OTC: BYDDF) charged up to a new all-time high after striking a deal to supply its largest order to date of electric busses overseas.

The Chinese automaker said in a statement today that it can now deliver 1,002 pure-electric buses to Bogotá, the capital city of Colombia after winning a bid. According to BYD, the order “sets a new record in sales volume for the overseas pure-electric bus industry.”

To help with supplying the parts, BYD has teamed up with local bus makers including Superpolo and BUSSCAR.

The Shenzhen-based company, backed by American billionaire investor Warren Buffett, delivered 470 of its buses to Bogotá in December. Li Ke, the senior vice president of BYD, told Yicai Global on Sunday that BYD will deliver the order of 1,002 buses by the middle of next year.

Currently, BYD dominates the electric bus market in Columbia, controlling more than 96.5% of the total share. In the nation’s capital, BYD maintains 99% of the market share, according to the company.

The deals made with BYD with help Columbia cut its carbon dioxide levels and improve air quality to help meet emission standards.

“This more than 1,000 buses order marks a fresh start, which will effectively promote the rapid development of green transportation in Latin America and the coming era of global bus electrification," Stella Li, the president of BYD Motors said in a statement.

She added, “In the move towards electrification globally, BYD will continue to make great contributions moving forward.”

On Monday in Hong Kong, the stock in BYD traded as high as HK$264.60 per share. As of intraday Monday, in the U.S., the stock carried a trading high of $33.10 per share. Both trading prices mark new record highs for the company.

BYD is off to a hot start in 2021, with shares up 24% in Hong Kong.

Topics:BYD, Warren Buffett