BMW Nears Record Low as Pre-Close Call Puts Spotlight on China Pricing and 7,700 Job Cuts
Published on 07/09/2026 at 17:36 | Redaktion boerse-global.de
Investors counting down to BMW’s pre-close call on Friday are bracing for clarity on two make-or-break issues: how the luxury carmaker plans to navigate brutal price competition in China and the scale of a cost-cutting programme that targets around 7,700 jobs. The stock, which has already surrendered nearly 40% of its value since January, slipped another 1.79% to trade at €58.22 on Thursday, leaving it just 2% above its 52-week low of €57.06 hit on 30 June.
The latest leg lower followed a fleeting bounce earlier in the week that showed just how fragile sentiment in the sector remains. On Tuesday, BMW shares jumped 2.0% to €61.32, riding a six-day rally in European auto stocks that pushed the Stoxx Europe 600 Automobiles & Parts index back above its 50-day moving average. The move surprised some observers — Goldman Sachs analyst Christian Frenes argued that the very weakness of industry data might work in the sector’s favour, by underscoring how aggressively Chinese manufacturers have stolen market share and raising the odds of tougher protectionist measures from policymakers.
That optimism proved short-lived. By Wednesday the stock had given back most of the gains, closing at €59.28, and the selling resumed on Thursday as the approach of the pre-close call refocused minds on unresolved problems. The index of European auto stocks remains more than 13% lower this year, a stark contrast to the broad Stoxx 600, which trades near record highs.
Should investors sell immediately? Or is it worth buying BMW?
The deterioration in BMW’s share price stands in sharp contrast to its underlying operations. In the US, deliveries jumped 13% in the second quarter to over 102,000 vehicles, with the X-series SUVs now accounting for more than half of sales. The domestic market also provided a bright spot, with German sales climbing nearly 19% in June. The strength in western markets, however, has been completely overshadowed by index expulsions and a profit warning in June, when management slashed its guidance for the automotive segment’s operating margin.
Technical indicators underscore the severity of the sell-off. The shares trade 16.26% below their 50-day moving average of €69.53 and a daunting 40% below the 200-day average. The Relative Strength Index has fallen to 30.9, flirting with oversold territory, while annualised 30-day volatility stands at 31.41%. At €97.90 in December 2025, the stock’s high for the past year now feels like a distant memory — more than 40% above current levels.
Management’s pre-close call on 10 July is expected to provide early clues on two fronts: pricing strategy in China, where domestic rivals are squeezing margins, and the pace of the restructuring programme that includes the planned elimination of roughly 7,700 roles. Full second-quarter and half-year results are due on 30 July. Until concrete numbers emerge on both fronts, the stock looks likely to hover near its 52-week low, with a potential catalyst just a day away.
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BMW Stock: New Analysis - 9 July
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