Research on Valuation Heterogeneity in the New Energy Vehicle Industry: An Integrated Financial-Market Analysis of BYD, Tesla, and NIO

DOI

10.2991/978-2-38476-475-4_119How to use a DOI?

Keywords

Valuation Heterogeneity; BYD; NIO

Abstract

This study employs a mixed-method approach, integrating financial ratio analysis, DuPont decomposition, and case study methods to conduct a comparative analysis of the financial and strategic performance of three leading electric vehicle (EV) manufacturers: BYD, Tesla, and NIO. For BYD, DuPont analysis and factor decomposition highlight its superior cost control mechanism and vertically integrated supply chain, enabling scalable profitability in the mass market segment. The moderate correlation between Tesla’s return on equity (ROE) and revenue growth was examined through market dynamics modeling, revealing its dual reliance on vehicle sales and high-margin software services, including Full Self-Driving (FSD) subscriptions. Positioning theory and SWOT analysis were applied to analyze the decoupling of NIO’s growth and profitability, emphasizing its strategic focus on brand premiumization and infrastructure investment, such as battery swap networks, rather than short-term profitability. Cross-company benchmarking was conducted through horizontal financial comparisons and microdata regression to assess operational efficiency, R&D-driven innovation, and global expansion strategies. These findings underscore BYD’s cost leadership advantage, Tesla’s software-centric ecosystem, and NIO’s premium user experience, providing actionable insights for EV companies to align their financial strategies with long-term market positioning. This research contributes to understanding the competitive dynamics in the rapidly evolving EV industry.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Weixin Zhang
PY  - 2025
DA  - 2025/11/11
TI  - Research on Valuation Heterogeneity in the New Energy Vehicle Industry: An Integrated Financial-Market Analysis of BYD, Tesla, and NIO
BT  - Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
PB  - Atlantis Press
SP  - 1080
EP  - 1086
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-475-4_119
DO  - 10.2991/978-2-38476-475-4_119
ID  - Zhang2025
ER  -