BYD’s Stock Sinks 78% Even as Overseas Sales Hit a Record High

The numbers coming out of BYD’s factories and the price tags on its Hong Kong-listed shares are telling two completely different stories. While the automaker’s global expansion accelerates and a new flagship SUV racks up pre-orders, the stock is glued to its 52-week low of 9.51 euros, currently trading at around 9.77 euros. That represents a 78% collapse over the past twelve months, with the shares now sitting roughly 11% below their 200-day moving average and a relative strength index of 37.4 signaling oversold territory.

Yet the operational picture has rarely looked stronger overseas. In May, BYD exported a record 160,644 vehicles, up 80.4% year-on-year and 19.4% versus April. International sales now account for 42.6% of total deliveries, compared with just under 24% a year ago. Over the first five months of 2026, exports reached 616,907 units, a 65% jump from the same period in 2025. The company’s revised annual target of 1.5 million vehicles sold abroad — raised from an earlier 1.3 million — looks well within reach. In markets such as the UK, BYD has already overtaken both Tesla and Kia in battery-electric vehicle sales.

The Great Tang and Denza Push Into Premium Turf

The domestic front tells a far more challenging story. May sales inside China fell 24% to 222,809 units, the 13th consecutive monthly decline. Subsidy cuts and an aggressive price war have squeezed margins, and regulators have actively curbed further price reductions. The damage is showing up on the bottom line: first-quarter net profit slumped 55% to 4.08 billion yuan, the lowest in over three years. For the full year 2025, earnings per share came in at 3.58 Chinese yuan, down from 4.61 yuan the previous year, while the net margin contracted from 5.2% to 4.1% despite revenue edging up to 804 billion yuan.

To counter the domestic headwind, BYD is doubling down on product excellence. On June 17, the Great Tang SUV officially hits the Chinese market, having already collected more than 100,000 pre-orders in just two weeks. The new flagship aims at the premium segment, boasting nearly 1,000 kilometres of range on the latest battery generation and a sub-four-second sprint to highway speed in its all-wheel-drive variant. Pricing targets the upper-middle class.

Should investors sell immediately? Or is it worth buying BYD?

The premium assault extends beyond China. BYD’s luxury brand Denza recently opened its first dedicated showroom in Hamburg, Germany, with plans for 40 sales and 80 service points across the country by the end of 2026. Cologne and Frankfurt are next. In July, the Denza Z electric sports car — packing over 1,000 horsepower — will make its world debut at the Goodwood Festival of Speed, with a global rollout planned even before the China launch. The message is clear: BYD is gunning for the performance elite.

India Launch and a Surprise Tariff Break

Meanwhile, BYD is pushing deeper into Asia. On June 9, sales of the Sealion 6 plug-in hybrid began in India, targeting the growing mid-range segment with a combined range exceeding 1,000 kilometres. And in an unexpected development, Canada slashed tariffs on Chinese-made electric vehicles to 6.1%, opening a door for lower-priced models. Industry estimates suggest the Canadian market could absorb nearly 50,000 BYD vehicles in the first year.

AGM and Dividend: A $20.6 Billion Guarantee on the Table

All these moving parts converge on June 9, when BYD holds its annual general meeting in Shenzhen. The agenda includes approving the 2025 financial statements, confirming Ernst & Young Hua Ming as the auditor for 2026, and — critically — authorizing a guarantee framework of up to 150 billion renminbi (about $20.6 billion) for subsidiaries and associates, coupled with counter-guarantees to manage risk. The dividend of 0.358 renminbi per share, totaling around 3.3 billion renminbi, carries an ex-dividend date of June 11. Investors must hold the stock before that date to qualify, with payout expected by the end of July.

BYD at a turning point? This analysis reveals what investors need to know now.

The stock’s 52-week high of 44.99 euros was set exactly one year before this year’s AGM — a stark reminder of how far sentiment has swung. Whether the export surge can pull profits back into positive territory in the second half of 2026 depends heavily on a stabilization of domestic demand and an easing of the price war inside China. For now, the market is watching the new SUV and the Denza rollout as the catalysts that might finally break the shares out of single-digit territory.

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