Chinese car maker BYD (OTCMKTS:BYDDF) closed Monday in the green after delivering promising monthly sales numbers, along with a surprise announcement. BYDDF stock jumped 8.8% Monday on news the company would cease production of fully combustion engine vehicles.
So what do you need to know about BYDDF stock today?
Well, on Sunday the automaker delivered its monthly production and sales numbers. BYD reported selling 104,878 electric vehicles in March, a more than 300% year-over-year jump. This also represents an 18% increase from the 88,283 units sold in February.
More shockingly, however, BYD announced it had already stopped production of pure fuel vehicles in March. While the news isn’t completely out of left field — BYD had previously announced plans to halt the production of gas cars in 2022 — investors were unaware the company had already stopped production.
Now, BYD has announced plans to maintain its attention on its pure-electric and plug-in hybrid vehicles.
What else do you need to know about BYD lately?
BYDDF Stock Soars on EV Focus
Today’s news reinforces the company’s status as part of a global campaign to eliminate combustion engine vehicles by 2040. BYD, alongside five other major car makers, have agreed to phase out traditional vehicles over the next two decades. However, BYD has stated it will continue to offer services and supplies for its existing fuel-based vehicles throughout their life cycle.
Investors were clearly pleased by BYD’s accelerated transition to an electric future. Given the company’s quick-rising sales numbers, this enthusiasm is logical.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.