BYD Just Reported Record Monthly Sales. Here's What That Means for Tesla Stock.
BYD is gaining ground where Tesla once had an advantage.
Overview
BYD's (OTC: BYDDY) August sales numbers further confirmed that the company is no longer a young start-up nipping at the heels of Tesla (NASDAQ: TSLA). The Chinese auto giant sold 440,293 new energy vehicles (vehicles powered by an alternative to fossil fuels) last month. That number is up nearly 18% from a year ago and 5% from July.
This was largely the result of soaring sales numbers outside of China, which surged 134.5% year over year in August. Interestingly, BYD's domestic sales actually fell 14.3%. And that means BYD isn't relying primarily on China for growth anymore. It can't. Which is potentially bad news for Tesla.
Details
For years, it was easy for Tesla investors to dismiss BYD as a competitor primarily in China. Tesla could dominate electric vehicles in the U.S. and parts of Europe while BYD sold millions of cars in China. That argument is getting harder to make.
Source
Originally published at www.fool.com.