China's BYD on Monday reported record profits and improving margins in the third quarter, despite an EV price war in that country led by its archrival Tesla.
General Motors reportedly reached a tentative deal to end a lengthy strike by autoworkers. BYD stock rose near a buy point, while GM stock made a fresh multiyear low before rebounding.
For Q3, Warren Buffett-backed BYD reported a record net profit of RMB 10.41 billion ($1.42 billion), up 82% year over year and up 52% from the second quarter. That came within BYD's expectations for Q3 net profit of RMB 9.55 billion-RMB 11.55 billion.
Notably, BYD's gross margin reached 22%, the highest since Q3 2020, CnEVPost.com said. It was also up from almost 19% in both the prior second quarter and the year-ago third quarter, even though BYD slashed EV prices this year in response to Tesla cuts.
The company earlier this month tied its earnings power to expanding scale advantage and cost control.
For Tesla, gross profit margins have been a source of worry amid price cuts and fell to 16% in Q3. Unlike Tesla, BYD also makes components for things like smartphones.
A tweet from BYD suggested that a crossover version of the Song, its top-selling electric vehicle model, will launch on Tuesday.
Meanwhile, several news reports said GM reached a tentative contract agreement with the United Auto Workers union, which would bring an end to work stoppages that have dragged on for more than six weeks.
The U.S. auto giant and the UAW union have yet to confirm the reports.
The UAW announced its tentative labor agreements with Chrysler and Fiat parent Stellantis on Saturday, and with Ford Motor last Wednesday.
BYD Stock, GM Stock
BYD shares, which trade over the counter, gained 1.6% to 31.44 on the stock market today. BYD stock is consolidating below a 36.27 buy point, the MarketSmith chart shows.
Shares of General Motors reversed early losses and gained 0.5% to 27.36. GM stock touched its lowest level since August 2020 intraday.
Shares of Ford, Stellantis and Tesla all fell Monday.
On Sunday, UAW union leaders approved the tentative contract agreement with Ford. The deal reportedly includes $8.1 billion in new plant investments by the automaker, $5,000 ratification bonuses, and 25% compound wage increases.
Last week, GM and Ford pulled full-year guidance. They cited the costly UAW strike.
