So, BYD Co (BYDDY) did it. The Chinese electric vehicle giant officially passed Tesla Inc (TSLA) for EV deliveries in 2025. Now, the question is what's next for the new top dog. According to new reports, the answer might involve circling north of the border for deals.
BYD is reportedly keen on getting into the high-octane world of Formula 1, looking to bid on a new team or acquire a stake in an existing one. But that's just part of a broader, more terrestrial strategy. The company recently filed a permit for vehicle imports to Canada, and Bloomberg reports it's also considering building a manufacturing plant there.
Why Canada? It's not the world's largest car market, but it's a friendly neighbor to one that is. For BYD, which has yet to sell cars in the United States, Canada could serve as a strategic beachhead. It's a way to get a foothold in North America, build brand recognition, and potentially set up a supply chain that looks a lot less daunting than trying to storm the U.S. gates directly.
And when it comes to how they'll expand, BYD's executive VP Stella Li made the company's preference clear. "I don't think a JV will work," she said, adding, "We're open to every opportunity." In other words, they'd rather buy than partner. That's a statement of confidence—or perhaps a lesson learned from the complexities of international business.
Speaking of complexity, the U.S. market is just that. Li called it a "complicated environment," which is putting it mildly. On top of the high tariffs slapped on vehicle imports, the U.S. has restrictions on what kind of connected vehicle tech can be in cars made overseas. So, for now, a direct assault seems off the table. The reported playbook involves a three-step warm-up: get into Formula 1 for global prestige, maybe buy an established auto company somewhere, and use Canada as the North American launchpad.
This all fits into BYD's bigger global game. The company is guiding to sell 1.3 million vehicles outside of China in 2026. To get there, it's using a page from the Tesla playbook: vertical integration and building massive manufacturing hubs that can export to whole regions. But BYD has its own secret sauce: lower prices. Its vehicles often start cheaper than Tesla's and other rivals', which lets it snap up cost-conscious buyers almost immediately.
In Europe, BYD backed up its expansion with heavy marketing and aggressive pricing to carve out market share. Even back home in China, where sales have faced headwinds, the company isn't backing down—it launched daily financing offers earlier this year to defend its turf.
As for what the market thinks of all this maneuvering? On the Monday these reports circulated, BYD's stock price was up 8.2% to $13.28. The stock sits in a 52-week range of $11.20 to $20.05. It's up 4.1% year-to-date in 2026, though it's still down 22% over the last full year. Investors seem to be weighing the massive growth potential against the very real geopolitical and market hurdles that come with it.
So, the race isn't just about who sells the most cars this quarter. It's about who can build the global footprint to dominate the next decade. BYD just took the lead on deliveries. Now, it's looking at the map and plotting its next move. And all eyes are on Canada.
