1. Tesla is the most successful EV (electric vehicle) manufacturer in the world. BYD from China is probably in second place. (All figures shown below are in USD. CNY has beeb converted to USD for comparison).

2. Which is a better stock to invest in? 

a) The market capitalization for Tesla is $637 billion and for BYD is $43 billion. Tesla is 14.8 times bigger than BYD.

b) The price earning ratio (trailing 12 months) is 55.0 times for Tesla and 84 times for BYD. BYD is more expensive than Tesla. 

c) The dividend yield is 0% for Tesla and 0.04% for BYD. Both yields are negligible. 

d) The forward PE ratio 44.6 times for Tesla and 57.5 times for BYD. BYD is still more expensive than Tesla. 

e) The forward earnings growth is 23% for Tesla and 46% for BYD.  Based  on the analysts forecast, the earnings growth for BYD is expected to be higher than Tesla. 

f) The debt to equity ratio is 12.5% for Tesla and 23.4% for BYD. These debt ratios are low relative to the ratios for other car manufacturers. 

g) The annual revenue is $81.8 billion for Tesla and $50.4 billion for BYD. Tesla has 62% higher revenue than BYD

h) The margin (net income compare to revenue) is 15.4% for Tesla and 2.9% for BYD. The industry average for car manufacturers is 5%. Tesla has 3 times the margin of the industry while BYD has a lower margin than the industry. 

3. I find Tesla to be a better stock to invest, compared to BYD.

Note - This is a personal observation. It is not investment advice. 

Tan Kin Lian