The second trillion company in China's new energy industry chain was born.

On June 10, BYD's share price hit an all-time high, with an intraday share price of 350 yuan per share and a market capitalization of more than one trillion yuan for the first time. This is also the second company with a market capitalization of trillion yuan after the Ningde era broke through trillion yuan on May 31 last year. Before that, BYD already ranked third in market capitalization among listed car companies in the world, after Tesla, Inc. and Toyota Group.

In just two years, BYD's share price has risen from about 50 yuan per share to seven times so far.

Behind this, the penetration rate of new energy vehicles in China is increasing, and local governments, industries and capital have invested in this industry one after another. The industrial cycle rotates, and the story of human nature is exquisite in the capital market.

And this upsurge continues, with science and technology giants such as Apple Inc, Alphabet Inc-CL C, and Baidu, Inc. rubbing their hands, the traditional "BBA" and the new power's "Wei Xiaoli" continue to enter the arena, and the stories of success and defeat are staged one after another.

BYD, which is popular in the market, has its own secrets. At the shareholders' meeting not long ago, Wang Chuanfu, chairman of BYD, revealed his strategy, that is, "fast".

"now it's not the big fish that eats the small fish, but the fast fish eat the slow fish," says Wang Chuanfu. Only in the fast process can you overtake.

In other words, at this stage, for players in the new energy industry, scale and market share are the core criteria for assessing a company. Whether it is car companies, battery manufacturers or other manufacturers, in the rapid growth period of the industry, once left behind will be a "lost decade."

BYD's recent operating figures are very strong. In the first five months of this year, BYD sold more than 500000 vehicles, reaching 507314. In particular, BYD's monthly sales have remained above 100000 in the past three months, reaching a new high of 114200 in May.

With the continuous improvement of BYD's subsequent production capacity, BYD's conservative sales are expected to be 1 million vehicles this year, and it also has the ambition to impact 2 million vehicles.

At a shareholder meeting on June 8, BYD's management revealed that BYD currently has as many as 600000 outstanding orders, with delivery expected in five to six months, according to minutes obtained by Wall Street.

According to the public information on production, BYD's overall production capacity will increase to 2.2 million vehicles in 2022 and further to 3.6 million vehicles in 2023 after the new capacity is put into production.

According to Wang Chuanfu, chairman of BYD, the process of electrification in China is accelerating. At this stage, it depends on who has more resources, better supply chain, and greater product advantages, who will be able to win a bigger market.

In the sales of new energy vehicles, Wang Chuanfu's BYD is already dancing with Musk's Tesla, Inc..

However, the expectations of car sales are not enough to support BYD's market capitalization of trillion yuan. After all, Tesla, Inc. 's current price-to-earnings ratio is less than 100 times earnings. By contrast, BYD's price-to-earnings ratio of more than 280 times earnings is a little expensive. Trillions of "Diwang" still need to give the market more stories.

The capital market believes that the business spin-off is another important point for BYD. Wang Chuanfu has also said that subsidiaries only earn BYD's money, that is not a skill, it is called a skill to make money in the market, and it means that the products are competitive.

The listing process of BYD Semiconductor is already in progress, and Fudi Power, the powertrain division of BYD, will also be listed when the time is ripe.

At present, the development momentum of Fudi battery is booming. According to market research firm SNE Research, BYD overtook Panasonic and LG New Energy in the global ranking of electric vehicle battery installations in April, ranking only behind the Ningde era.

On June 8, Lian Yubo, executive vice president of BYD Group, revealed that BYD will provide battery products to Tesla, Inc.. This is the first time that senior executives of the company have confirmed this news since it was rumored that BYD would supply batteries to Tesla, Inc. last year.

The rise of the Ningde era is closely related to the surge in sales of Tesla, Inc., the largest customer. Battery manufacturers such as Panasonic and LG New Energy, which once topped the global power battery list, also got a large order from Tesla, Inc. and were gradually recognized by the market and stood out from the market fight.

If BYD successfully enters Tesla, Inc. 's battery supply system, it will also become Tesla, Inc. 's second in the Chinese market and the fourth battery supplier in the world. This is also an example of BYD's technical access in the field of electrification.

With Tesla, Inc. 's brand endorsement, the corresponding cooperation of other new energy car companies will also be more smooth. This is a first-mover advantage at a time when many car companies are looking for second and third supply.

According to the plans of battery manufacturers, by 2025, Ningde era capacity will reach 670GWh, BYD and Honeycomb Energy will also reach 600GWh, and China Chuangxin Airlines' capacity target is 500GWh. In the field of power batteries, a fierce race for princes' hegemony has just begun.

But the story of the penetration of new energy vehicles will come to an end, and power battery capacity will get rid of the shortage. Intelligence will be a brand new story after the scale. Whether the new energy vehicle can really become the "next generation smart terminal" after the mobile phone, as expected in the industry, is the most interesting link in the second half of the industry.

Wang Chuanfu is full of confidence in this. He said that the first half of the new energy vehicle is electric and the second half is intelligent. BYD in the field of intelligence, as in the field of electrification, will get through all the core technologies and fully verify them.

When Wang Chuanfu set the ambition of "being number one in the world" in the auto industry 15 years ago, no one could predict how far he would go. Today's trillion market capitalization is a vote of confidence from investors that BYD can go further in a rapid change in the industry.

May "King Dee" live up to the times.