Shares of BYD, a major Chinese electric vehicle (EV) manufacturer. It rose sharply after the company revealed exciting new technology. This technology promises to charge electric vehicles. This is done almost as quickly as filling a gasoline car. Continue reading to learn more about BYD stock surges after their new announcement.
New Charging Technology
BYD announced its new “Super e-Platform” on Monday. This platform can achieve a peak charging speed of 1,000 kilowatts. Cars can gain 400 kilometers (about 249 miles) of range in just 5 minutes of charging. This claim is significant. This is because it addresses a common concern. Also, the concern among EV users is known as range anxiety. Range anxiety refers to the fear that an electric car will run out of battery. This is before reaching the destination.
Stock Market Reaction
BYD’s shares jumped more than 6% in Hong Kong after the announcement. This rise marked a new 52-week high for the stock. At one point, the stock was trading around 2.5% higher. Overall, BYD shares have increased over 51%. This is since the beginning of the year. Also, the Shenzhen-listed shares also rose by more than 2% on Tuesday morning. This is although later lost some of those gains.
Comparison with Competitors
BYD’s new charging technology outpaces some competitors. Moreover, Tesla’s supercharger currently offers a maximum charging rate of 500 kilowatts. These can add about 270 kilometers of range in 15 minutes. Mercedes-Benz recently announced that its all-electric CLA can recharge up to 325 kilometers in 10 minutes.
Wang Chuanfu is the chairman of BYD. He underlined that EV charging should be as quick as refueling a petrol car. As a result, this invention has the potential to revolutionize the way people think about electric vehicles and their charging demands.
Industry Expert Opinions
Xing Lei is an independent automotive analyst in China. He praised BYD’s new technology. Also, he described it as “out of this world”. He described it also as a “heartbreaking” development for foreign investors. Other companies focus on smart technology. However, he noted that BYD is pushing forward with electrification.
New Vehicle Models
BYD plans to use the “Super e-Platform” in its new models. This includes the Han L sedan and the Tang L SUV. Both vehicles have already started pre-sales in China. To support this new technology, BYD also announced plans to build over 4000 ultra-fast charging stations. This is built across the country. However, the company has not disclosed how much it will spend on these new facilities. Neither have they mentioned when it will be available for use.
Recent Financial Moves
BYD launched a sale of its Hong Kong shares earlier this month. The company aimed to raise up to $5.2 billion. The money raised will likely go towards research and development. It will also go towards other investments.
Other Industry Developments
Other companies are also working to address range anxiety. Some are exploring fuel tanks to charge batteries. Others are developing battery swap stations. These stations allow drivers to exchange their depleted batteries for fully charged ones. This is just in a few minutes.
Another Chinese company, Nio, announced a partnership on the same day as BYD’s announcement. This partnership is with battery giant Contemporary Amperex Technology (CATL). Together, they plan to create the largest battery-swapping service network for passenger vehicles. CATL is also investing 2.5 billion yuan (approximately $350 million). This is into Nio’s power unit to support this initiative.
