06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
Does Warren Buffett own the next Tesla?
1. Does Warren Buffett own the next Tesla?
March 2, 2014
BYD Company Limited Ticker: 1211:HK
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BYD
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For Investment Professional Use Only
2
3. Introduction!
§ In
this
presenta.on
we
outline
our
case
for
the
success
of
BYD
Company
Limited
and
how
the
current
zeitgeist
surrounding
Tesla
will
translate
into
a
substan.ally
higher
stock
price
for
BYD
§ BYD
is
an
under
told
and
undervalued
story
which
is
now
coming
to
light
§ The
large
rela.ve
valua.on
gap
between
BYD
and
Tesla
will
be
closed
with
a
substan.al
upside
revalua.on
for
BYD
shares
as
their
story
becomes
more
mainstream
in
the
years
ahead
3
4. Is BYD going to $200?!
§
§
§
§
The
success
of
Tesla
has
kicked
off
a
global
zeitgeist
Tesla
and
BYD
are
the
Coke
and
Pepsi
of
the
global
transporta.on
and
energy
revolu.on
BYD
Company
Limited
200
175
?
150
BYD
is
an
under
told
and
undervalued
story
which
is
now
coming
to
light
The
large
rela.ve
valua.on
gap
between
Tesla
and
BYD
will
be
closed
with
a
substan.al
upside
revalua.on
for
BYD
as
their
story
becomes
mainstream
in
2014
125
100
75
50
25
0
Jul-‐07
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Jan-‐11
Apr-‐11
Jul-‐11
Oct-‐11
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Jul-‐13
Oct-‐13
Jan-‐14
Apr-‐14
Jul-‐14
Oct-‐14
Jan-‐15
Apr-‐15
Jul-‐15
Oct-‐15
§
We
believe
BYD
will
trade
above
$100
within
18
months
and
$200
within
5
years
4
5. Who the #$&% is BYD?!
§
§
§
§
§
10%
owned
by
Warren
Buffet’s
Berkshire
Hathaway
World’s
largest
rechargeable
baUery
manufacturer
Fastest
growing
Chinese
auto
company
#1
electric
bus
manufacturer
in
the
world
#1
hybrid
and
pure
electric
car
manufacturer
in
China
5
6. Wang Chuanfu is China’s Elon Musk!
“He’s
a
combina.on
of
Henry
Ford,
Thomas
Edison
and
Bill
Gates”
-‐
Charlie
Munger
Vice
Chairman,
Berkshire
Hathaway
Referencing
BYD
CEO
Wang
Chuanfu
(pictured
right)
6
7. BYD Long Term Integration Strategy!
3
key
energy
technologies:
§ Electric
Transporta.on
§ Energy
Storage
Systems
(ESS)
§ Renewable
Energy
Genera.on
7
8. Transportation : Plug In Hybrid!
§ Top
selling
model
Qin
§ 0-‐62
MPH
in
5.9
seconds
§ 177
miles
per
gallon
§ Top
speed
115
MPH
§ Global
Market
8
9. Transportation : BYD K9 Bus!
§ Pure
Electric
Bus
§ 30
hours
of
drive
.me
between
charge
in
NYC
MTA
tests
§ Less
than
30%
of
the
opera.ng
cost
per
mile
rela.ve
to
diesel
bus
§ U.S.
version
assembled
in
California
§ Global
Market
Design
§ Coming
to
a
city
near
you…
9
10. Transportation : Pure Electric Vehicle!
§ Denza
(new
brand)
§ 50/50
Partnership
between
Daimler
and
BYD
§ Designed
specifically
for
the
Chinese
consumer
§ Mercedes
B
Class
design
§ Mid
2014
launch
§ Tesla
alterna.ve
in
China
10
11. Energy Storage Systems (ESS)!
§ Very
well
posi.oned
in
the
emerging
energy
storage
market
§ Unlike
Tesla
they
are
currently
producing
ESS
at
industrial
scale
§ Exis.ng
ESS
represent
the
largest
completed
energy
storage
projects
on
the
planet
§ Ver.cal
integra.on
and
proven
capacity
to
scale
produc.on
11
12. Energy Storage Systems : !
Market Opportunity!
§ Energy
storage
is
a
500+
Billion
dollar
market
opportunity
§ Posi.oned
as
a
global
leader
in
the
segment
§ BYD
is
very
far
ahead
of
firms
like
Tesla
who
want
to
enter
the
business
Energy
Storage
Market
Poten.al
Grid-‐Scale
Energy
Storage
($B)
$150
$120
$90
$60
$30
$0
$114
$30
2014
2015
2016
2017
§ Lux
Research
-‐
$114
B
by
2017
§ Piper
Jaffrey
-‐
$600
B
market
over
10-‐12
years
§ Boston
Consul>ng
Group
-‐
$400
B
market
by
2020
§ EPRI/DOE
-‐
annual
savings
of
$50
billion/
year
via
energy
storage
Plenty
of
market
poten.al…
for
the
right
product
at
the
right
price
12
13. Investment Catalyst!
§ Tesla’s
success
story
has
put
electric
transport
on
the
global
center
stage
§ The
recent
announcement
of
the
Tesla
“Gigafactory”
has
added
the
“energy
play”
to
the
conversa.on
as
well
an
addi.onal
mul.
billion
dollar
premium
to
Tesla’s
valua.on
§ BYD
has
recently
been
an
undersold
story
aner
its
early
2008
success
with
Warren
Buffet
taking
a
10%
stake
in
the
company
§ The
current
rela.ve
valua.on
gap
between
Tesla
and
BYD
is
now
3-‐1
in
favor
of
Tesla
§ We
believe
the
market
is
beginning
to
recognize
the
true
value
of
BYD
and
will
begin
to
price
in
a
similar
Tesla
growth
premium
to
BYD
shares
§ The
market
is
hungry
for
the
“next
Tesla”
and
BYD
is
well
posi.oned
to
ride
that
wave
on
a
number
of
fronts
§ We
see
the
market
filling
the
rela.ve
value
gap
with
an
upside
re-‐pricing
of
BYD
shares
to
$100
within
the
next
18
months
13
14. About Longboard!
An
alterna>ve
approach
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naviga>ng
the
investment
ocean
Longboard
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Jesse
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Reminiscences
of
a
Stock
Operator
14
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