In the volatile waters of the capital markets, certain moments create ripples that affect the broader financial landscape. One such moment is exemplified by BYD's recent stock performance, marking a notable event in financial circles. On February 21, BYD's stock price surged by over 5.6%, reaching an unprecedented high of 383 RMB per share, culminating in a staggering market capitalization of 1.1 trillion RMB. This key milestone not only thrust BYD into the limelight but also sparked widespread discussions and analyses within the financial community.

The ascent of BYD’s stock is reminiscent of a brilliant star dazzling the capital markets. Surpassing the trillion RMB threshold signifies an increasingly solidified leadership position for BYD in the burgeoning electric vehicle (EV) sector. This achievement is not merely a result of BYD's relentless efforts; it also serves as a substantial testament to the remarkable growth of the entire EV industry. Investors now recognize the tremendous potential inherent in the EV market, offering a rejuvenating boost to the sector.

Reflecting on BYD's stock trajectory over the past several years is akin to traversing an intriguing business saga. The past few years have witnessed a golden development phase for the EV industry, fueled by supportive government policies, technological advancements, and surging market demands. As the industry front-runner, BYD's stock naturally mirrored the industry's upward trajectory.

At the onset of 2020, the stock market was beleaguered due to the COVID-19 pandemic. BYD's stock lingered around the 50 RMB mark during this downturn. However, as the pandemic was effectively curbed in China, the economy began to revive. Coupled with continuous favorable policies for the EV sector, BYD’s stock price embarked on a steady climb. The introduction of the blade battery in July 2020, known for its high safety and energy density, generated significant market buzz, propelling the stock past the 100 RMB milestone.

Entering 2021, the EV marketplace remained fervent, with BYD consistently rolling out new models, such as the Han EV and Tang DM-i. Their sales figures soared, leading the stock price to ascend rapidly, with peaks exceeding 300 RMB and the market valuation surpassing 800 billion RMB. Although market fluctuations and intensified competition led to some price corrections, the overarching trend was decidedly upwards.

In 2022, BYD further solidified its dominance in the EV sector, achieving annual sales of over 1.8 million vehicles, thereby securing the title of global EV sales champion. The firm's advancements in research and development and market expansion contributed robustly to supporting its stock price through turbulent market conditions, as it consistently pushed past the 350 RMB threshold.

Despite the challenges that arose in 2023, including subsidy reductions and fluctuating raw material prices, BYD, leveraging its strong cost management and product competitiveness, maintained an upward growth trajectory. By continuously refining its product offerings, launching new models, and expanding into overseas markets, BYD witnessed a steady rise in market share and consistently set new sales records, further exemplifying its resilience and growth potential.

Between 2024 and 2025, BYD's stock price exhibited an explosive trajectory, achieving record highs. In 2024, BYD's sales took off, with total units sold approaching 4.27 million—a 41% year-on-year increase. The first month of 2025 alone saw sales of 300,000 vehicles, marking a 49% increase year-on-year and capturing approximately 33.7% of the Chinese EV market.

On February 10, 2025, during a smart driving strategy conference, BYD unveiled 21 intelligent driving models, significantly lowering the entry price for intelligent vehicles from the industry standard of 200,000 RMB to 70,000 RMB. This move generated significant market interest and turned out to be a crucial catalyst for the stock price surge. From early 2020 to February 21, 2025, BYD's stock price multiplied several times, with its market capitalization ballooning from over 100 billion RMB to 1.1 trillion RMB, establishing it as a star player in the capital markets.

The rise in BYD's stock price to new heights is not a mere coincidence; it is a culmination of various factors including sales growth, technological advancements, and market strategies, showcasing its comprehensive strength. Sales figures serve as a critical indicator of an automobile enterprise's market performance and fundamentally underpin stock price movements. In recent years, BYD’s sales growth has been striking, establishing a solid base for its stock valuation.

Reviewing BYD’s annual sales data reflects a clear upward trend. From 2017 to 2020, sales figures stabilized around 410,000 to 520,000 units annually. However, a dramatic transformation occurred in 2021, culminating in sales reaching 730,000 units—a 75% year-on-year increase. In 2022, the figures skyrocketed to 1.87 million, equating to a 156% growth. The trend continued into 2023 with sales breaching the 3 million mark, climbing to 3.02 million units—a 61% escalation. 2024 saw another estimated 4.27 million units sold, marking a 41% increase, while January 2025's total of 300,000 units represented a 49% year-on-year increase, showing sustained momentum.

In the Chinese market, BYD commands a critical position, leveraging a diverse product line and notable brand clout. Models under its Dynasty and Ocean series have captivated consumers, consistently ranking among the best-sellers. For instance, sales of the Song family regularly maintain high levels, while the Song Plus DM-i stands out in the compact SUV segment due to its performance and value. Meanwhile, the Qin family achieved impressive sales figures, surpassing 85,000 units monthly, with a cumulative 650,000 sales within the A-segment sedan market by November 2024.

BYD's significant growth trajectory also resonates in overseas markets. In May 2021, BYD announced its passenger vehicle export plan, identifying Norway as the initial international test market. Over the ensuing years, BYD reaped substantial rewards from its overseas outreach, with total exports reaching 430,000 vehicles in 2024—an impressive 72% increase.

BYD's EVs have permeated numerous international markets, acquiring widespread acceptance among local consumers. In Europe, models like the Tang EV and Han EV have successfully tapped into the mid-to-high-end market segments due to their premium features and performance. Meanwhile, in Southeast Asia, BYD’s vehicles remain popular, with consistent sales growth.

The steady sales growth not only underscores BYD’s competitive prowess but also generates substantial profits for the company, instilling investor confidence in future growth and thus facilitating the ongoing rise in stock price.

In the automotive industry, technological innovation acts as a vital driver for progression. BYD maintains a steadfast commitment to this principle, achieving significant breakthroughs in the realms of battery technology and smart driving. These innovations have significantly enhanced product performance and quality while cementing BYD's core competitiveness, lending robust support to its stock valuation.

Particularly noteworthy is BYD’s blade battery technology. This innovative battery utilizes lithium iron phosphate chemistry and is uniquely structured to optimize space and energy density. In comparison to conventional lithium-ion batteries, the blade battery is lauded for its safety; it does not catch fire or explode under puncture tests, effectively alleviating consumer safety concerns. Furthermore, its longevity and high mileage range meet increasing consumer performance expectations. The introduction of the blade battery has bolstered the competitiveness of BYD's EVs and sparked considerable interest within the industry, positioning BYD as a role model for other players.

In the realm of smart driving, BYD has made significant strides as well. The company launched its “Eye of God” high-level intelligent driving system on February 10, 2025. Built on BYD’s self-developed architecture, this system integrates a comprehensive array of sensors and employs a high-speed Ethernet network for real-time monitoring across the vehicle, thereby enhancing the intelligent driving experience provided to users.

Equipped with advanced hardware, including tri-camera setups and LiDAR sensors (on higher-tier models), the system significantly boosts perception accuracy and decision-making abilities. Its proprietary algorithms are adept at navigating complex driving scenarios, providing swift and accurate responses. Also worthy of mention is the data-driven capacity of the “Eye of God” system, leveraging a vast database from over 4.4 million intelligent vehicles, facilitating rapid model iterations and optimized algorithms.

BYD’s advancements in battery and smart driving technologies not only augment the products' value but also enhance the company's image, broadening market prospects. As technological improvements and applications continue to evolve, BYD's EVs are poised for further competitiveness, likely attracting an even larger customer base, ultimately fostering continued growth in stock valuations.

Beyond sales growth and tech innovation, BYD’s holistic market strategy also plays a crucial role in the recent stock price uptrend. Actively venturing into both Chinese and global markets aids BYD in expanding its business landscape and amplifying its market share, laying a solid groundwork for future growth.

In the domestic arena, BYD has built a robust sales network and service framework, capitalizing on years of market experience and brand prominence. The company has not only maintained substantial market shares in first-tier cities but is also aggressively penetrating second and third-tier cities along with rural markets. By tailoring models suitable for diverse consumer segments, BYD addresses a variety of market needs effectively. Furthermore, strategic collaborations with leading Chinese auto manufacturers pave the way for additional reinforcement of BYD’s stature within the local EV ecosystem.

Internationally, BYD has mapped out a clear strategy for globalization, employing a phased approach to enter worldwide markets. Initially targeting nations and regions with robust demand for EVs and favorable policy landscapes, BYD has made inroads in Europe, Southeast Asia, and South America. The establishment of local subsidiaries, service centers, and production facilities enhances the company’s operational responsiveness and client satisfaction. Notably, BYD’s fully-owned factory in Thailand reflects their commitment to local production and sales while plans for a similar facility in Hungary emphasize their strategic outreach within Europe.

Moreover, BYD is keen on adaptive product development. By assessing regional market characteristics and consumer demands, the company targets specific vehicle enhancements tailored to local markets. For instance, European models benefit from superior safety and tech features, whereas Southeast Asian offerings undergo modifications suited for that climate to ensure reliability in harsh conditions.

This comprehensive market strategy not only expands BYD's market share but also mitigates risks associated with dependence on single markets, enhancing its overall resilience. As the global EV market flourishes, BYD appears well-positioned to capitalize on this growth potential, propelling its performance and stock price upward.

Looking ahead, BYD seems poised to maintain its leadership in the EV sector, with prospects for continued stock price appreciation. However, the investment landscape remains fraught with challenges. The fiercely competitive environment, rapid technological shifts, and evolving policy impacts could all influence BYD’s financial performance and stock trajectory. For investors, rigorous assessment of associated risks and strategic asset allocation remain imperative, alongside staying attuned to industry developments and BYD's strategic progress to timely adjust investment strategies to align with market dynamics.