We often think market is rational but it is not. If it is, then BYD would be priced like Tesla, and Tesla would have been priced like BYD.

> How come BYD’s stock price is essentially flat?

Their profit growth has slowed (significant drops in profit YoY). Even revenue has dropped in some quarters.

Investors had very high growth expectations given their past rapid expansion, but investors now see only moderate growth.

Intense competition and pricing pressure.

China EV market is slowing. Overcapacity is emerging over the sector and govt subsidies are softening.

Finally, global macro and sentiment towards Chinese stocks is cautious.