Analysis of the Driving Factors and Market Impact of BYD Becoming a Hot Stock

BYD (002594.SZ) has become a hot stock driven by the combination of internal performance growth and external industry dividends. In Q3 2025, the company’s revenue reached 194.985 billion yuan, gross profit margin rose to 20.6%, overseas sales were 233,000 units (YoY +146.4%), and overseas market share reached 20.9%[0]. At the industry level, the penetration rate of new energy vehicle sales exceeded 50% for the first time in October 2025 (51.6%), with global sales of 14.237 million units from January to October (YoY +26%)[0]. Policy-wise, China has implemented export controls on critical minerals such as rare earths to protect domestic technological advantages[0]. The company’s global share in the power battery sector increased by 1.1%, remaining among the top[0]. Its product matrix covers the Dynasty Series, Ocean Series, and high-end models, and its international strategy is deepened through overseas factories (e.g., Mexico, Southeast Asia)[0].

1. Synergy Effect
   : BYD’s dual leadership in electric vehicles and power batteries creates synergy, enhancing competitiveness[0];
2. Geopolitical Response
   : Overseas factory layout effectively mitigates supply chain risks, such as the warning from GM’s supply chain de-Chinaization[4];
3. Industry Trend Alignment
   : New energy vehicle penetration has crossed a critical threshold, and the company benefits from sector rotation and热度 in segments like energy storage[3];
4. Policy Dividends
   : Critical mineral resource control policies consolidate the company’s advantages in battery materials[0].

• Valuation Pressure: The 52-week stock price range is 87.40-138.99 yuan; attention should be paid to valuation rationality[2];
• Intensified Competition: The global new energy vehicle market competition is becoming increasingly fierce, which may affect market share[0];
• Market Volatility: The A-share 4000-point level is entangled between bulls and bears, and style shifts may bring short-term volatility[5].

• Global Market Expansion: Overseas sales are growing rapidly, and the international strategy has great potential[0];
• Technical Barriers: Technological innovations in battery materials, intelligent cockpits, and other areas build a moat[0];
• Policy Support: New energy vehicle industry policies continue to be favorable, and the industry has broad development space[3].

BYD becoming a hot stock is the result of resonance between the company’s strong fundamentals and industry trends. Its Q3 performance, overseas expansion, and technological innovation form core support, while also benefiting from increased new energy vehicle penetration and policy support. Investors should pay attention to the impact of valuation levels, competitive dynamics, and market style shifts, balancing risks and opportunities.