BYD (OTCMKTS:BYDDY) stock is struggling to gain momentum today, but the Chinese electric vehicle (EV) giant is still highly focused on growth and expansion. Specifically, yesterday brought reports that the company is will begin selling EVs in South Korea as early as the first half of 2024. This could be an excellent catalyst for BYDDY stock, but it will likely spell trouble for Korean automakers.
BYD has outdone former sector leader Tesla (NASDAQ:TSLA) for the past two years, earning it the crown as the world’s top EV seller. Now, the company’s expansion into a new market will lead to an even greater market share, further strengthening its dominance as a global EV powerhouse.
This isn’t BYD’s only positive update that investors should be watching closely. But it is certainly an important one. As Electrek reports, the company is an EV leader in many markets, including Japan, Thailand and Brazil. Now, the firm is prepared to conquer another.
BYDDY Stock: A Name to Watch
With good news trending, it makes sense to ask why BYDDY stock is falling more than 2% today. The most likely answer is that market momentum is simply working against shares. TSLA stock is also falling today as well as fellow Chinese EV stocks Nio (NYSE:NIO) and XPeng (NYSE:XPEV).
When BYD begins selling EVs in South Korea, however, it will likely give shares a needed boost. BYDDY stock has been struggling since the beginning of 2024, as market conditions haven’t favored EV stocks. That said, the company is working hard to turn things around. Expanding into a new market is an excellent way to do so.
This is good news for BYDDY investors, although it could be very bad for companies like Hyundai (OTCMKTS:HYMTF) and Kia, two prominent automakers based in South Korea. Having to compete with an industry giant with EVs growing in popularity could significantly affect their market share.
True Global Progress
South Korea isn’t the only country where BYD is gaining a presence. For example, the company is considering building a plant in Mexico as well as already breaking ground in other new markets. As InvestorPlace contributor Will Ashworth reports:
“Not only is BYD China’s largest automaker, it’s also the world’s 10th largest by volume. It is currently building a new EV plant in Thailand that will open in the summer, with three others in Brazil, Hungary and Indonesia.”
Indeed, BYD is expanding at a rate no investor should ignore. If the firm continues these efforts to grow its global presence, BYDDY stock may be one of 2024’s breakout sensations.
On the date of publication, Samuel O’Brient 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.
