China EV maker BYD dethroned Tesla in terms of deliveries last quarter and could be a leading global company, according to Barclays. Analyst Jiong Shao initiated coverage of BYD with an overweight rating and set a $40 price target, implying the stock could jump 38% from Monday’s closing price of $28.84. “BYD (Build Your Dream) became the #1 global EV maker in terms of deliveries in 2Q22, dethroning Tesla from that pedestal for the first time, and its triple-digit revenue growth rate is likely to continue for the rest of 2022, despite its already sizable base,” Shao wrote in a Tuesday note. The analyst said BYD has the potential to become a leading global brand, a rarity among Chinese businesses that are highly focused domestically and are typically “not naturally transferable to markets outside of China” either because of regulatory reasons or consumer taste preferences. However, BYD, with a sharp focus on product design and its manufacture of critical product components in-house, already has one-third of the electric vehicle market in China. The company will have to expand abroad for growth, and has already launched in several countries, including Australia, Germany, Japan, Norway and Singapore, according to the note. “With highly competitive products both in quality and in price, Chinese EVs have a decent shot at taking meaningful share in overseas markets over time,” Shao wrote. “We believe it is just a matter of time before BYD to arrives in the US; the largest auto market in the world,” Shao added. —CNBC’s Michael Bloom contributed to this report.