China's BYD Suffers $45 Billion Stock Market Wipeout As Aggressive Price Cutting Dents Profit - Analyst Calls For 'Repositioning' As Tech Leader

BYD is under pressure to rebuild investor confidence after a $45 billion stock selloff wiped more than 30% off its Hong Kong shares in just four months, the steepest underperformance among peers. 

Analyst sell ratings are at their highest since 2022, reflecting skepticism over the Chinese EV maker's strategy of leading the industry in deep discounts during an intensifying price war, Bloomberg reported.

The company's June-quarter profit plunged 30%, its first drop in over three years, as rivals including Geely and Leapmotor gained traction. Investors worry BYD's aggressive“market share gain by pricing” approach is now backfiring, especially as Beijing clamps down on“involution” practices it blames for deflationary pressure and reputational damage to Chinese manufacturing.

BYD has cut its 2025 delivery target to 4.6 million vehicles from 5.5 million, meaning it must ship 1.7 million units in the final four months, which is a difficult task given an aging lineup and tighter regulations. 

New models have been pushed to early 2026, with analysts saying their successes will be a key stock catalyst.“No OEM could keep their product cycle strong forever - even BYD cannot,” said Xiao Feng at CLSA, noting buyers are shifting to fresher offerings from rivals.

Even with its struggles at home, BYD's overseas business is shining. Goldman Sachs sees BYD selling 900,000 to 1 million cars overseas in 2025, beating the company's 800,000-unit target. The stock is also trading at a discount, at 17 times forward earnings versus a three-year average of 20. Options activity has surged to a record 600,000 contracts outstanding, nearly triple June levels.

Analysts expect upcoming launches to feature updated designs, BYD's God's Eye autonomous system in cheaper models, battery upgrades, and longer plug-in hybrid ranges. 

“Strategic developments that reposition BYD as a technology leader rather than simply a highly efficient EV manufacturer could reshape investor perception and drive share price upside through a valuation re-rating, despite near-term downward pressure on earnings,” said Gary Tan at Allspring Global Investments.

On Stocktwits, retail sentiment for BYD was 'bearish' amid 'extremely low' message volume.

BYD's stock has risen 19.5% so far in 2025.

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