Chinese EV maker BYD announces share sale, floats Tesla collaboration

BYD revealed on Tuesday that it had raised $5.6 billion (€5.3bn) in one of the largest share sales in Hong Kong - and the biggest seen in four years.

The proceeds are expected to be used to fuel BYD’s expansion abroad. The company is currently working on setting up local production facilities in Turkey, Hungary and Brazil. 

BYD sold 129.8 million shares at HK$335.20 (€40.9) per share, an 8% discount on Monday’s closing price.

Euronews has contacted BYD for comment. 

In an interview with the Financial Times, BYD also revealed that it plans to cooperate with competitor Tesla in an attempt to reduce the number of petrol cars on the road.

“Our common enemy is the internal combustion engine car. We need to work together…to make the industry change,” explained executive vice-president Stella Li.

Although the two carmakers are fighting for dominance of the EV market, Li claimed BYD is still willing to share technologies with foreign companies.

She referenced autonomous driving software as well as EV technology.

This offer to collaborate comes despite escalating geopolitical tensions between China and the US.

BYD has been attempting to steadily increase its market share in Europe over the last few years by offering relatively cheaper models than several European EV makers.

The company’s sophisticated battery technology, such as its blade battery, has also contributed to higher demand in the EU. 

BYD’s blade battery is a kind of lithium iron phosphate (LFP) battery which has better cooling efficiency and improved energy density. This, in turn, allows EV models to have a better range.

On the other hand, Tesla’s European sales have been lagging, an effect that analysts have partly attributed to CEO Elon Musk’s rising involvement in politics.

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