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