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.

BYD P/E(TTM), P/S...

• 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.

TSLA P/E(TTM), P/S...

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.