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BYD proposes doubling share buyback, unveils U9 supercar

Shares of BYD Auto (BYDDY, 1211.HK) are moving up as the Chinese EV maker announced a new proposal to double its share buybacks in an effort to safeguard shareholder interests. In addition, the company unveiled a luxury, all-electric supercar, the Yangwang U9, with a price tag of over $233,000.

Yahoo Finance Anchors Brad Smith and Seana Smith break down the latest developments for BYD and what it could mean for the company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

BRAD SMITH: Time now for some trending tickers. Chinese EV maker BYD is proposing doubling its share buyback saying it hopes to safeguard the interests of all shareholders by doing so. This comes as BYD unveils its most expensive vehicle yet, a sports car with a price tag of $233,000 here.

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You're taking a look at shares up by about 1 and 1/2 percent right now. We know that this company has already done extremely well in combating and going up against and now outlasting or out positioning itself against Tesla in a core region in China for its own growth in the Asia-Pacific region and how Tesla has built out the Shanghai gigafactory to try and service better into that region. But BYD certainly capitalizing on some of the local consumer sentiment as well within the region.

SEANA SMITH: Yeah, they certainly are. Now, this move, a couple of important things to point out. When it comes to the potential buyback here, the reason why that is significant, obviously, it could potentially boost investor confidence here. Something that would be more advantageous here till the company stabilize and also potentially enhance the current value. That is, at least, what the company sees in terms of the beneficiary as to why they would do this.

Now, the second part of what you also just said there Brad was that more expensive vehicle that they did unveil yesterday. You can see right there on your screen, the lower third, $233,00. Putting that in perspective, that puts it in direct competition, obviously, with the highest priced offerings out there when it comes to Ferrari, when it comes to Lamborghini, so shifting the narrative just a bit. When it comes to BYD a lot of people when they initially think of it, think of those lower-priced options when it comes to vehicles, but now clearly going at the other end of the spectrum with that higher-priced offering.