How is it that byd sells cars just like Tesla in numbers (or more?) but is valued a lot less

**BYD's Lower Valuation Compared to Tesla** 1. **Sales Volume Comparison**: - **BYD**: Boyd Gaming (BYD) has been reported to have sold more electric vehicles (EVs) than Tesla (TSLA) in certain regions. For example, BYD became the world's largest EV producer in 2023. - **TSLA**: Tesla's global sales figures are substantial, but specific regional sales data limited. Tesla's deliveries were lower in China, with weekly deliveries dropping significantly. 2. **Market Valuation Contrast**: - **BYD**: As of the latest data, BYD's valuation metrics show a P/E ratio of 10.99, a P/S ratio of 1.53, and a Price to Book Ratio of 4.45. These indicate a more modest valuation compared to Tesla. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |BYD|BYD.N|Boyd Gaming|20240605|9.087858|1.316941870432817|2.8831499418332993|169| |BYD|BYD.N|Boyd Gaming|20240606|9.091266|1.3174357545019837|2.8842311906395377|169| |BYD|BYD.N|Boyd Gaming|20240607|9.033327|1.3090397253261512|2.8658499609334935|169| |BYD|BYD.N|Boyd Gaming|20240610|8.929378|1.293976261216569|2.832871872343238|169| |BYD|BYD.N|Boyd Gaming|20240611|8.999245|1.3041008846344848|2.8550374728711145|169| |BYD|BYD.N|Boyd Gaming|20240612|9.27701|1.344352436271565|2.9431592505795017|169| |BYD|BYD.N|Boyd Gaming|20240613|9.290643|1.3463279725482316|2.947484245804453|169| |BYD|BYD.N|Boyd Gaming|20240614|9.145796|1.32533789960865|2.9015311715393435|169| |BYD|BYD.N|Boyd Gaming|20240617|9.280419|1.3448463203407317|2.9442404993857396|169| |BYD|BYD.N|Boyd Gaming|20240618|9.159429|1.3273134358853165|2.905856166764295|169| - **TSLA**: Tesla's valuation is significantly higher, with a P/E ratio of 174.05, a P/S ratio of 11.58, and a Price to Book Ratio of 14.31. These figures suggest a premium market perception. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |TSLA|TSLA.O|Tesla|20240605|40.998261|6.550271457032534|8.669022225372021|185| |TSLA|TSLA.O|Tesla|20240606|41.687031|6.66031601751068|8.814661798758271|185| |TSLA|TSLA.O|Tesla|20240607|41.579265|6.643098161109338|8.791874654623006|185| |TSLA|TSLA.O|Tesla|20240610|40.714787|6.50498100867248|8.609082128842307|185| |TSLA|TSLA.O|Tesla|20240611|39.981504|6.387824724898127|8.454030474182796|185| |TSLA|TSLA.O|Tesla|20240612|41.534752|6.6359864378131315|8.782462573349747|185| |TSLA|TSLA.O|Tesla|20240613|42.748301|6.8298744729412935|9.039065631220758|185| |TSLA|TSLA.O|Tesla|20240614|41.703431|6.662936126093494|8.818129407648419|185| |TSLA|TSLA.O|Tesla|20240617|43.912651|7.0159021823210175|9.285265862421323|185| |TSLA|TSLA.O|Tesla|20240618|43.30822|6.919332465983052|9.15745970618441|185| 3. **Financial Performance and Growth**: - **BYD**: Despite a lower valuation, BYD has demonstrated strong financial performance and growth. The company reported a 34% increase in net income and nearly 30% revenue growth. - **TSLA**: Tesla's financial performance is also impressive, but its valuation is influenced by its ambitious growth narratives and significant investments in autonomous technology. 4. **Autonomous Technology and Innovation**: - **BYD**: BYD's autonomous technology is relatively less advanced compared to Tesla's Full Self-Driving (FSD) and Optimus robot initiatives. - **TSLA**: Tesla's focus on autonomous technology and AI initiatives, such as the Optimus robot, contributes to its higher valuation. 5. **Market Sentiment and Investor Perception**: - **BYD**: The company's lower valuation may reflect market sentiment influenced by concerns about China-related risks and a perceived lack of autonomous technology leadership. - **TSLA**: Tesla's higher valuation is supported by its leadership in electric vehicle technology, innovative spirit, and Elon Musk's influence on market perception. In conclusion, while BYD sells a significant number of EVs and has strong financial performance, its valuation is lower due to factors such as market sentiment, investor perception, and a lack of advanced autonomous technology compared to Tesla. Tesla's higher valuation reflects its leadership in electric vehicle technology, innovative initiatives, and market sentiment surrounding its brand and leadership.