BYD's Profit Rebound Meets Washington Ambitions as European Factory Plans Firm Up
Published on 09/18/2026 at 06:01 | Editorial boerse-global.de
BYD shares have found fresh momentum from two very different catalysts this week. The stock rose 4.3% to EUR 9.12 on Tuesday, one day after the Chinese automaker confirmed plans to build four new European facilities — three vehicle assembly plants and a battery factory. A separate report that Beijing is weighing whether to place BYD in the business delegation accompanying President Xi Jinping to next week's summit with Donald Trump in Washington added a further 3.7% gain on Wednesday, lifting the shares to EUR 9.07.
The twin developments land as BYD's operating performance is finally turning a corner. Second-quarter 2026 results, published at the end of August, showed a net profit of CNY 8.2 billion — a 30% increase year on year and the company's first profitable quarter after four consecutive periods in the red.
August Deliveries Set the Tone
Underpinning the improved earnings picture is a record August. BYD sold 440,293 new-energy vehicles during the month, its best monthly showing of the year and a gain of 17.84% over August 2024. Battery-electric passenger cars crossed a quarter of a million units in a single month for the first time, reaching 256,230 vehicles.
Overseas demand did the heavy lifting. Export sales hit a record 189,466 units, up 134.45% year on year and 4.95% higher than July. At home, the picture was less encouraging: domestic volumes slipped 14.3%, according to media reports, as a bruising price war continues to squeeze margins in China's core market.
Management has attributed earlier delivery delays on several key models to the transition from the first to the second generation of its Blade Battery, which supports fast-charging functions. As production capacity ramped up, BYD posted back-to-back annual highs in July and August.
Should investors sell immediately? Or is it worth buying BYD?
Overseas Push Now Carries the Growth Story
The international business has become the group's principal engine. First-half exports climbed 71% to more than 790,000 vehicles, accounting for 44% of total sales. That trajectory is set to steepen: BYD is targeting more than 2.5 million units sold abroad next year, according to Bloomberg, well above the roughly two million expected for the current year.
Europe sits at the heart of that strategy. Alfredo Altavilla, a former Fiat Chrysler executive now advising BYD on the continent, confirmed at an event in Turin that the company intends to build four plants there over the long term — three assembly sites plus a battery facility. The plans are designed to satisfy local manufacturing requirements and to draw in more European buyers.
A Washington Opening?
The summit report has given investors a second reason for optimism. Bloomberg said senior officials around Xi's chief of staff, Cai Qi, are reviewing a list of Chinese corporate leaders for the state visit scheduled for 24 September. For BYD, whose supply chains sit squarely at the centre of US-China tensions over electric vehicles, any diplomatic thaw between Washington and Beijing would ease pressure on export-focused manufacturers.
The stock remains well below its 52-week high of EUR 12.49, set on 2 October last year — a gap of 27%. On a year-to-date basis, the shares are still down 15%, even after this week's advance.
Labour Unease and a September Vote
Not every recent headline has been welcome. Online posts suggested that an annual employee profit-sharing payout had been scrapped, drawing loud criticism on social media. BYD has not commented on the matter. The unrest comes after first-half profit had already fallen by roughly a fifth, a reminder that the domestic price war continues to weigh on profitability.
Attention now shifts to 29 September, when BYD will hold an extraordinary general meeting. Shareholders will vote on amendments to the company's articles of association, the election or re-election of directors, and the launch of an asset-pool transaction together with associated external guarantees.
Chart signals remain cautious. With an RSI of 41.9 and the price 6.9% below its 50-day moving average, the stock has yet to confirm a lasting reversal — though this week's climb offers a first encouraging sign.
Ad
BYD Stock: New Analysis - 18 September
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
