From purchasing an existing Formula 1 team to launching a brand-new twelfth entry, Chinese automotive giant BYD is evaluating every possible option. However, record team valuations and the enormous complexity of modern Formula 1 projects are making every scenario increasingly difficult.
BYD, one of the world’s leading electric vehicle manufacturers, has fallen in love with Formula 1. Stella Li, BYD executive vice president and CEO for the Americas, Europe and the Middle East, has never hidden her belief that Formula 1 represents the perfect global platform to strengthen the company’s image and international visibility.
One thing appears certain: BYD wants to enter the world of Formula 1 in some form. What remains unclear is exactly how the Chinese company intends to do it.
Several Formula 1 entry options remain under consideration
Following the Chinese Grand Prix earlier this season, Motorsport.com analysed the various roles BYD could potentially assume within Formula 1. Two months ago, several possibilities were being discussed internally.
Among the options under consideration were the creation of a completely new Formula 1 team, the acquisition of an existing entry, a title sponsorship agreement similar to the historic Sauber-Alfa Romeo partnership, or even a direct global sponsorship agreement with Formula 1 itself.
In recent weeks, BYD’s name has frequently appeared in media reports, but in practical terms the situation remains largely unchanged compared to two months ago.
Stella Li is expected to meet Formula 1 executives ahead of the Monaco Grand Prix in what could become an important discussion to define the Chinese manufacturer’s future priorities. The BYD executive will also be present inside the Monte Carlo paddock during the race weekend.
Christian Horner rumours continue to circulate
During the Montreal weekend, rumours intensified regarding a possible BYD offer to purchase control of an existing Formula 1 team. According to speculation, such a project could potentially involve former Red Bull team principal Christian Horner.
If Alpine were the target, Christian Horner’s profile could theoretically fit well into the project. A scenario involving Racing Bulls, however, appears considerably more complicated.
The Faenza-based team has grown significantly in recent years, but a crucial portion of its operations still relies on facilities located within the Red Bull Campus in Milton Keynes.
Acquiring Racing Bulls would therefore mean remaining deeply connected to Red Bull for at least the medium term, since the Faenza structure is not yet capable of operating entirely independently.
In such a situation, Christian Horner himself might actually be the least suitable figure to manage relations between the two organisations, especially considering the difficult and highly public separation that took place last July.
Formula 1 team valuations continue to skyrocket
Another major factor complicating any potential acquisition is the extraordinary rise in Formula 1 team valuations.
Over recent months, several investment funds and even major automotive groups reportedly approached Formula 1 teams with offers exceeding two billion dollars. The response, however, was often a polite but firm “no, thank you.”
No team currently appears interested in selling, even for figures that only three or four years ago would have been considered higher than the value of a top Formula 1 organisation. The widespread belief inside the paddock is that team valuations will continue rising significantly in the coming years. As a result, few owners are willing to risk future regret by selling too early before reaching what they consider the strategically perfect moment.
Launching a twelfth team would be equally difficult
Creating a completely new Formula 1 entry would not necessarily be easier than purchasing an existing one. The lengthy process required for Cadillac to secure its Formula 1 entry and assemble a functioning organisation demonstrates just how complicated such a project can become.
Even under the best possible circumstances, a new team would still require support from an established top organisation during its first seasons — not only for power units, but also for broader technical assistance. BYD certainly possesses the financial resources necessary to seriously pursue a Formula 1 project, but even for a giant automotive manufacturer the road ahead would remain extremely challenging.
Beyond the technical complications, the timing for a twelfth Formula 1 team may simply not be ideal yet.
“Some teams are still trying to digest Cadillac’s arrival,” one paddock insider reportedly explained in Montreal.
Monaco could provide the first real clues
For now, the only truly concrete developments are several photographs taken during the Cannes Film Festival, where Stella Li was seen together with Christian Horner.
The images quickly fueled speculation across Formula 1 media circles, although at this stage they remain little more than rumours. The Monaco Grand Prix weekend may provide a clearer indication of BYD’s true intentions, but for now there is still not enough evidence to suggest that any Formula 1 project is close to becoming reality.
What is already certain, however, is that Formula 1 — the global platform that fascinates BYD so much — has already provided enormous visibility to everyone involved in this increasingly intriguing story.
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