BMW’s South Carolina EV Bet: $1.7 Billion and 13% Sales Growth Can’t Lift Stock from Near 52-Week Low
Published on 07/06/2026 at 06:13 | Redaktion boerse-global.de
The Bavarian automaker is spending billions to fortify its US footprint, yet the market remains fixated on the drag from China. BMW’s $1.7 billion investment in manufacturing capacity in South Carolina – including a new battery assembly plant – is designed to shield margins from tariff risk and accelerate the shift to electric vehicles. But the stock, which closed at €60.66 on Friday, has shed nearly 37% since the start of the year, hovering just above its 52-week low.
A full $1 billion of that outlay goes to the Spartanburg plant, where existing lines are being retooled for fully modular electric platforms. The remaining $700 million will build a brand-new battery assembly site in neighboring Woodruff. By 2030, BMW aims to produce at least six pure battery-electric models locally, starting with the iX5 expected in late 2026. Spartanburg, already a crucial export hub, has shipped vehicles worth over $100 billion from the region in the past decade. The local battery production slashes import dependency, providing a buffer against potential US tariffs that could cost European rivals up to €5 billion annually – a move that should underpin stable margins in the premium segment.
While that long-term play unfolds, the US sales engine is running hot. In the second quarter, BMW’s American deliveries jumped 13.0% year-on-year to 102,713 units, with cars and SUVs rising almost in lockstep. The X5 took the top spot, even as a fifth-generation model looms. Over the first half, US sales still managed a 4.7% gain despite a sluggish start to the year; including a slight dip at Mini, the group edged up 3.9%. Yet none of that momentum translates into share price support.
Should investors sell immediately? Or is it worth buying BMW?
The elephant in the room is China. A deteriorating market there forced management to slash its full-year profit guidance in mid-June. BMW now expects the automotive segment’s margin to land between 1% and 3%, down sharply from the earlier target of up to 6%. That warning, more than any US production ramp, has kept the stock pinned near its recent trough. Technically, the shares now trade 27% below their 200-day moving average, and the relative strength index of 35 points to short-term oversold conditions – but no catalyst has emerged to reverse the downtrend.
Investors will get fresh data points in the coming weeks. BMW hosts an analyst call on July 10 to discuss current trading, followed by the full half-year report on July 30. The numbers will show whether the US surge can offset Asian headwinds, and how the $1.7 billion capex burden will weigh on free cash flow and operating margins. The timely completion of the Woodruff plant is viewed as a key milestone. In the meantime, BMW continues to expand distribution of its US-made models, most recently introducing the Spartanburg-built X6 to the Indonesian market.
The contrast between factory-floor confidence and trading-floor gloom is stark. While rivals like Xiaomi are reportedly losing nearly $5,600 per EV sold, BMW’s US business remains profitable. But the market, for now, is looking east – and seeing only red.
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