BYD $BY6.F is slowly approaching the North American backyard. According to the Globe and Mail, it’s working on a network of roughly 20 dealerships in Canada — starting in the Greater Toronto Area, then Vancouver, Montreal and Calgary — and is using the new Canadian quota of 49,000 Chinese electric vehicles per year with a reduced tariff of 6.1% instead of the original 100%.
Canada thus becomes a gateway: BYD does not officially sell passenger cars in the US today, and high tariffs plus regulations on "smart" cars effectively shut the door there, but it is simultaneously considering either its own factory in Canada or the acquisition of a weakened legacy automaker, which would give it a stronger position across the North American region in the future.
I'm thinking about buying, but my broker eToro only offers 01211.HK. Is that the same as the ticker mentioned above, just traded in HK dollars? My account is in US dollars, so will I be charged a conversion fee?
I'm down about 30% and nothing has happened for a year, but I'm patient and will keep holding.
It's interesting that BYD isn't choosing a direct entry into the U.S., but is taking a much more strategic route through Canada. In the current situation that makes sense — even just because of the level of the tariffs.
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A factory in Canada sounds good and would certainly make it easier for them to sell there. BYD is one of my top positions, so this makes me happy.