Chinese electric vehicle giant BYD Co ( BYDDF ) has been rapidly expanding abroad.

The move has paid off with BYD passing Tesla Inc ( TSLA ) for EV deliveries in 2025. New reports show that could be just the beginning.

BYD Sets Sights On Canada, Acquisitions

BYD is reportedly keen to bid on a new Formula 1 team or acquire a stake in an existing one, with this potentially being part of a broader strategy of acquisitions and deals.

Earlier this month, the company filed a permit for vehicle imports to Canada, and Bloomberg reports that BYD is also considering building a manufacturing plant there.

Executive VP Stella Li indicated that the company favors outright acquisitions over joint ventures, stating, "I don't think a JV will work," adding, "We're open to every opportunity."

Canada may not be the largest automotive market, but it offers future access to the U.S. — a market BYD has yet to enter.

What About The US? It’s ‘Complicated’

The U.S. market is a "complicated environment," according to Li. In addition to imposing high tariffs on vehicle imports, the U.S. has placed restrictions on the connected vehicle technologies allowed on cars made overseas.

To boost its brand awareness and set the stage for a future U.S. launch, BYD could consider three strategic steps: acquiring or launching a Formula 1 team, buying out an established automotive company, and expanding into the Canadian market.

BYD's Global Expansion and Growth

The car maker's guidance is to sell 1.3 million vehicles outside China in 2026.

It has also expanded into other countries using methods similar to Tesla’s, including vertical integration and large manufacturing facilities capable of exporting vehicles to multiple markets.

Also helping BYD are its vehicles, which come with lower starting prices than Tesla and other EV companies, often capturing immediate market share among consumers buying primarily on cost.

BYD also used heavy marketing in Europe to support its expansion and was aggressive with advertising and pricing to boost market share.

While sales have struggled in China, BYD isn't ready to give up its market share in its home region, launching daily financing offers earlier this year.

Stock Price Action

The automaker’s stock price is up 8.2% to $13.28 on Monday versus a 52-week trading range of $11.20 to $20.05. BYD shares are up 4.1% year-to-date in 2026, while shares are down 22% over the last 52 weeks.

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