The Chinese electric-vehicle giant is racing in two very different directions at once. While BYD’s top brass court former Red Bull team principal Christian Horner for a potential Formula 1 entry, the group is also negotiating to buy idle European factories from Stellantis and other legacy automakers. The flurry of expansion plans comes as a brutal price war at home sends first-quarter earnings into a tailspin.
Vice-president Stella Li met Horner in Cannes to explore a role for the Briton, who left Red Bull in mid-2025. Sources close to the discussions suggest Horner could become team principal or even chief executive of a BYD-affiliated F1 operation, possibly with a financial stake of his own. The Chinese manufacturer is weighing three routes into motorsport’s top tier: building a completely new team, supplying engines to existing outfits, or buying a minority stake in a current squad. Market observers tip the Alpine team as the most likely candidate for a partial acquisition.
For BYD, the push goes beyond simple brand-building. Li views the championship as a real-world testbed for the company’s electric drivetrain and battery technologies under extreme conditions. The FIA has publicly welcomed interest from a major Chinese player. However, any deal will take time to materialise: Horner remains bound by non-compete clauses that prevent him from returning to the pit lane before 2027, and the final decision on an F1 commitment is expected imminently if BYD wants to align with sweeping regulation changes coming in the next few seasons.
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While the motorsport talks grab headlines, the company’s day-to-day business is a story of relentless product churn and geopolitical manoeuvring. On 26 May, BYD will begin selling the Sealion 06 DM-i in China, a plug-in hybrid that boasts a pure-electric range of up to 310 kilometres and a combined range of more than 1,800 kilometres. Two days later, the Song Ultra DM-i follows, equipped with a new LiDAR-based driver-assistance system and offered in two battery sizes. The model offensive extends beyond China: the BYD Ti 7 made its debut in Saudi Arabia, and the group is simultaneously rolling out a network of ultra-fast charging stations at home that can replenish most of a battery in minutes.
The European front is equally active. BYD is in talks with Stellantis and other manufacturers about acquiring unused production sites, a move that would drastically accelerate its local manufacturing ambitions. The timing is strategic: in April 2026, Chinese automakers doubled their EV sales in Europe to more than 38,000 units, capturing a 15 per cent market share.
Yet the financial reality is stark. First-quarter net profit tumbled roughly 55 per cent to 4.08 billion yuan (about US$560 million) as cut-throat competition on the home turf eroded margins. The stock trades sluggishly below HK$100 in Hong Kong, but analysts at Simply Wall St value the shares at HK$180, citing BYD’s deep vertical integration and projected annual earnings growth of 23 per cent through 2028. Whether that potential can be unlocked while the company pours cash into Formula 1 speculation and a global factory hunt remains the central question for investors.
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