BYD Rallies on Record Exports and Europe Factory Shift as Q2 Tesla Beat Battles China Slowdown
Published on 07/03/2026 at 17:36 | Redaktion boerse-global.de
BYD is rewriting its European playbook. The Chinese EV giant has shelved its $1 billion Turkish factory project in Manisa and is now scouting Spain or France for a manufacturing base, pivoting to brownfield sites — existing automotive plants the company would acquire and retool. Two dedicated teams are already evaluating options, with a decision expected in weeks. The shift aims to dodge EU import tariffs on Chinese-made EVs, which currently range from 10% to 45%, and to meet upcoming “Made in Europe” requirements. The stock responded with a 5.37% jump to €9.44 on Friday, extending a seven-day rally that has added 14.08% since the 52-week low of €8.03 hit on June 30.
The move comes as BYD reclaims the global crown for pure battery-electric vehicle (BEV) sales. The company delivered 557,090 BEVs in the second quarter, outpacing Tesla’s 480,126. Yet the numbers tell a mixed story. International sales hit a record 174,897 units in June — a 95% surge that accounted for about 43% of total monthly volume — while domestic sales in China collapsed 22% to 228,123 units. The divergence is the central tension driving the stock’s valuation. Overseas margins are generally healthier, but China industry margins have shrunk to just 3.2% in a “red ocean” of price wars that threaten to erode scale benefits.
Technology is BYD’s other weapon. The company launched the Seal 08 on July 2, the first model to feature the Blade Battery 2.0 as standard equipment, boasting 1,500 kW fast-charging capability and a range exceeding 1,000 kilometers. However, the transition to the second-generation battery is reportedly causing production bottlenecks, potentially limiting the company’s ability to meet surging export demand in the near term. BYD’s charging network — currently over 7,000 stations — is slated to grow to 20,000 by year-end, a key metric to watch.
Should investors sell immediately? Or is it worth buying BYD?
The bear case centers on China. First-half total sales fell 16%, and if the domestic slide accelerates faster than export growth, that could become the new normal rather than a temporary dip. The stock remains 12.27% below its 200-day moving average of €10.76 and 36.23% below the 52-week high of €14.80 from July 2025. A failure to break the 50-day line at €9.96 could trigger another test of the June lows.
Beyond Europe, BYD is deepening its global footprint. In Brazil, the Camaçari industrial complex will shift from assembly of imported parts to full vehicle production — welding, painting, and stamping — by July 2026. In Australia, June deliveries hit a record 18,881 vehicles, trailing Toyota by just 243 units. Back in the EU, BYD’s primary factory in Szeged, Hungary, is on track to begin vehicle assembly in the fourth quarter of 2026, and a second European site in Spain or France would complement rather than replace it. European registrations surged 158% year-on-year in May, underscoring the urgency of local production.
BYD’s narrative now rests on whether it can sustain export volumes above 170,000 units per month while stabilizing its home-market share. If production bottlenecks clear and the infrastructure build-out stays on track, the current valuation — still nursing a 29% loss over the past twelve months — could look cheap. But the risks of a prolonged domestic erosion and trade friction remain sizable, making the next few months decisive for the stock’s direction.
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BYD Stock: New Analysis - 3 July
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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