Warren Buffett-backed BYD said it expects a more than 300% jump in profits in the third quarter. Despite headwinds including a resurgence of Covid in China, rising material costs and a slowing economy, BYD has remained fairly resilient.

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Shares of the Chinese manufacturer of electric cars BYD rose on Tuesday after the company forecast a huge jump in third-quarter profit.

Late on Monday, the Warren Buffett-backed firm said net income for the three months to Sept. 30 was estimated at 5.5 billion to 5.9 billion yuan ($764.5 million to $820 million), up 333 .6% to 365.11% compared to the same period last year. similar period last year.

Shares in Hong Kong-listed BYD were up 5.6% in the afternoon.

“In the third quarter of 2022, despite the difficult and difficult economic situation, the spread of the pandemic, extremely high weather temperature, high commodity prices and other adverse factors, the new energy vehicle industry continued to accelerate its growth trend,” they said. in BYD. in the statement.

The company said sales of its new energy vehicles, including electric vehicles, “continue to reach record highs,” helping to increase market share and “resulting in a significant improvement in earnings and effectively offsetting pressure on margins caused by rising commodity prices.” in primary production”. .”

A number of electric car manufacturers from Tesla to BYD have been struggling with the rising cost of raw materialssuch as lithium, which are critical for batteries.

From the start of the year to the end of September, BYD sold 1.18 million new energy vehicles, surpassing Tesla’s figure of just over 900,000 deliveries.

BYDs are different models among the best-selling new energy vehicles in China which is the world’s largest market for electric vehicles.

While the Shenzhen-headquartered company has remained reasonably resilient in the face of headwinds such as a resurgence of Covid in China and a slowing economy, its smaller rivals have struggled.

In August, the Chinese startup Xpeng, which creates electric cars, announced weak forecasts for car deliveries for the third quarter.