No. of Recommendations: 1
Not sure I'd be selling BYD right now. I haven't looked at the share price or company for years but they are in the sweet spot for grid battery storage:
https://electrek.co/2023/02/07/byd-las-vegas-renew...Large batteries can be used to arbitrage the price of electricity during different parts of the day and replace expensive "peaker" plants. Payback times can be very short.
The more utilities use solar and wind the more demand there will be for energy storage. Depending on price, demand could be "quasi-infinite."
There is a shortage of batteries in the world that looks like it will last for at least several years ... maybe a decade.
Large battery storage facilities can cost hundreds of millions and have gross margins over 50% in the current environment. (Ultimately, it looks like a commodity to me.)
It sounds fanciful, but if the world transitions to solar/wind and LFP batteries become/remain the preferred method of storage, then BYD is looking at a big chunk of a market worth Trillions. Profits could ramp to tens of Billions in just a few years.
