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The Chinese automaker BYD is making headlines for its remarkable growth trajectory, having become the largest carmaker in China and expanding its global footprint, including a recent electric SUV launch in Mexico. The company is anticipated to finish a billion-dollar facility in Indonesia by year-end, underscoring its ambitious expansion plans.
However, a financial analysis by GMT Research raises red flags regarding BYD's financial health. While BYD's annual report states it carries $3.7 billion in debt, GMT claims the true figure is closer to $44 billion. The mounting debt, attributed to the company’s aggressive financing within its supply chain, raises concerns for potential investors regarding the stability of their holdings.