The electric vehicle maker has launched Hong Kong’s biggest listing in four years as it seeks cash for overseas expansion.
BYD revealed on Tuesday that it had raised $5.6 billion (€5.3bn) in one of the largest share sales in Hong Kong – and the biggest seen in four years.
The proceeds are expected to be used to fuel BYD’s expansion abroad. The company is currently working on setting up local production facilities in Turkey, Hungary and Brazil.
BYD sold 129.8 million shares at HK$335.20 (€40.9) per share, an 8% discount on Monday’s closing price.
Euronews has contacted BYD for comment.
BYD supports working with Tesla
In an interview with the Financial Times, BYD also revealed that it plans to cooperate with competitor Tesla in an attempt to reduce the number of petrol cars on the road.
“Our common enemy is the internal combustion engine car. We need to work together…to make the industry change,” explained executive vice-president Stella Li.
Although the two carmakers are fighting for dominance of the EV market, Li claimed BYD is still willing to share technologies with foreign companies.
She referenced autonomous driving software as well as EV technology.
This offer to collaborate comes despite escalating geopolitical tensions between China and the US.
BYD has been attempting to steadily increase its market share in Europe over the last few years by offering relatively cheaper models than several European EV makers.
The company’s sophisticated battery technology, such as its blade battery, has also contributed to higher demand in the EU.
BYD’s blade battery is a kind of lithium iron phosphate (LFP) battery which has better cooling efficiency and improved energy density. This, in turn, allows EV models to have a better range.
Tesla sales in Europe
On the other hand, Tesla’s European sales have been lagging, an effect that analysts have partly attributed to CEO Elon Musk’s rising involvement in politics.
This includes his support for far-right parties such as the Alternative for Germany party, as well as his friendship with US President Donald Trump.
Increased focus on hybrid cars
Late last year, the EU imposed tariffs on Chinese electric vehicles imported into the bloc, accusing the Chinese government of unfairly subsidising domestic EV companies.
This has led to BYD facing an extra tariff of 17%, on top of an existing 10% levy.
Automaker Geely is contending with a levy of 18.8%, while Chinese state-owned car manufacturer SAIC Group has also been hit with a 35.3% tariff.
This is, again, in addition to the 10% standard tariff that the EU levies on all car imports into the bloc.
EU levies have raised concerns about Chinese EV sales potentially suffering in the coming months, as these tariffs may significantly raise model prices.
However, this has also encouraged several Chinese EV makers to focus more on hybrid vehicles, which are not included in the current tariffs, in an attempt to retain their European market share.
