The One EV Stock That Trump’s Tariffs Ironically Helped

Ever since President Trump dropped his tariff bomb on EVs, most automakers have been laying in the fetal position waiting for someone to save them. But one company over in China is probably having a celebration dinner right now as you read this article.

You guessed it. BYD… the EV maker that most people still aren’t taking seriously (even though they sell their cars for 75% less than the competition)… just published Q1 numbers that'll definitely make Elon Musk take a second look at his vision board. They have projected their net income to jump (get this) 119% to $1.4 billion. And they delivered more than ONE MILLION EVs in just three months compared to Tesla’s 336,681 shipments.

While Trump's tariffs have most auto execs reaching for the Tums (or something stronger), BYD's probably sending the Don a fruit basket. That’s because they never planned on selling cars in America anyway. The US market already had enough tariffs to keep them away before Trump decided to go full "Art of the Deal" on Chinese imports. According to Wedbush analyst Dan Ives, they were "probably drinking champagne" at BYD headquarters when the tariff announcement dropped. 

BYD's 2025 highlight reel so far is mighty impressive. They hit record high share prices in March and unveiled superfast charging tech that makes Tesla's look like a Nokia phone charger from 2005. 

The Chinese automaker posted $107 billion in sales, finally beating Tesla's annual revenue for the first time in 7 years. They delivered 1 million EVs in Q1 while Tesla shipped a comparatively sad 336,681. And their stock is up 20% this year while Tesla's down more than 40%. 

Of course, there whole “edge” in the market is selling cars for affordable prices. One of BYD's most popular EVs starts around $10,000. That's less than what some American families spend on Starbucks in a year. Meanwhile, Tesla's still convincing people that $40,000 is "budget-friendly" for a car that might randomly decide your steering wheel is more of a "suggestion" than a requirement. 

Here’s what it comes down to… these new tariffs could force additional costs of up to $100 BILLION on automakers like Tesla each year. Let that sink in. That's like being forced to buy Amazon... twice. To add insult to injury, BYD's overseas sales are growing substantially. Not in the US, mind you, but in places where people don't have to choose between buying an EV and paying for their kid's braces. The gap between BYD and Tesla has been widening ever since Tesla first lost the lead in 2022. And with these tariffs… It's like watching Tyreek Hill race against my neighbor who "used to be pretty fast in high school."

With BYD’s stock already up about 44% this year, while Tesla has declined 33% in the same period, analysts are forecasting it could reach as high as $85 per share with an upside of 45% (I guess sometimes it pays to be cheap).

Stocks.News has positions  in Amazon and Tesla.