Chinese EV giant BYD is targeting a spot on the Formula 1 grid, a move that could pit it against automotive rivals like Mercedes and shake up the sport's ownership structure.
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BYD Confirms Formula 1 Talks Amid Bid for 24% Alpine Stake
Chinese EV giant BYD is targeting a spot on the Formula 1 grid, a move that could pit it against automotive rivals like Mercedes and shake up the sport's ownership structure.
BYD, the world’s largest electric vehicle maker, confirmed it is in substantive negotiations to enter Formula 1, a high-stakes move that could see it acquire a reported 24 percent stake in the Alpine team and challenge established automotive giants on a global stage.
"While the company officially stated there is 'no news to disclose for now,' BYD Group Executive Vice President Li Ke acknowledged at the 2026 Beijing Auto Show that the firm has met with F1 CEO Stefano Domenicali and the two sides 'remain in close contact,'” a company representative said.
The 24 percent stake in Alpine, currently held by a consortium including Otro Capital and RedBird Capital, has become a focal point as F1 team valuations soar. For context, Aston Martin's valuation has grown to an estimated $3.2 billion since being acquired for $117 million in 2018, while Dorilton Capital has seen a near 10-times return on its $200 million Williams purchase in 2020, according to figures reported by The Athletic.
For BYD, an F1 entry offers a powerful global marketing platform to enhance its brand prestige and a high-speed R&D lab for its battery and hybrid technologies. However, the move comes as the sport grapples with the controversial issue of multi-team ownership, a debate that could complicate any potential deal.
A Contentious Grid
The prospect of a new manufacturer entering the sport highlights a growing debate around team ownership structures. McLaren Racing CEO Zak Brown has actively campaigned against alliances and co-ownership, recently writing to the FIA to voice his concerns. The primary examples are Red Bull GmbH's ownership of both the champion Red Bull Racing team and its sister squad, Racing Bulls, as well as Mercedes' potential interest in the very same Alpine stake BYD is reportedly circling.
Mercedes is set to become Alpine's engine supplier in 2026, and its involvement as a shareholder could raise questions about technical independence and on-track competition. This issue of "A/B team" setups, where smaller teams can benefit from the resources and technology of larger ones, is seen by critics like Brown as a threat to the sport's fairness, especially as all teams are now financially sustainable under the 2021 cost cap.
High Cost of Entry
While BYD possesses the financial might to enter F1, building a competitive team from scratch, or even as a minority partner, presents immense challenges under the new 2026 regulations. The sport's history is filled with examples of ambitious projects that failed to deliver, a point underscored by the reported interest of former Red Bull team principal Christian Horner in the same Alpine stake.
An investment from BYD would be a bet on its ability to translate its mass-market EV dominance into the specialized world of elite motorsport. It would need to navigate not only the technical complexities but also the political landscape of the F1 paddock. The potential return is a place among the world's most elite automakers, but it requires a substantial, long-term investment to avoid becoming another cautionary tale.
This article is for informational purposes only and does not constitute investment advice.
[1] BYD entering F1? Reportedly acquiring stake in Alpine team, official response: no news to disclose for now.[2] Christian Horner and BYD talks spark intriguing new Formula 1 team possibility[3] Other sports have strict rules against multi-team ownership. Why doesn’t F1?[4] Why Christian Horner’s BYD F1 Team Bid Could Be a Massive Ron Dennis Mistake
