BYD’s European Factory Hunt Intensifies After Turkey U?Turn, Stock Nears Oversold Amid Pentagon Dispute
14.06.2026 - 02:43:39 | boerse-global.de
BYD’s shares slid to a fresh 52?week low of €9.25 last Thursday, dragged lower by a perfect storm of geopolitical friction and a strategic retreat from Turkey, even as the Chinese automaker posted an 80% jump in overseas sales. The stock clawed back to €9.49 by Friday’s close, but that left it barely above the year’s trough and nursing a double?digit decline since January. Technical indicators now point to oversold territory: the relative strength index sits at 33.7, suggesting a potential bounce if support at the recent low holds.
Meanwhile, the company has scrapped its planned €1 billion factory in Manisa, Turkey, where it had intended to build 150,000 vehicles annually and create thousands of jobs. Vice?President Stella Li confirmed that Hungary is now the “absolute priority,” with the first European plant there still on track to start production in the fourth quarter of 2026. Turkish authorities are examining possible penalties for the stoppage, adding a layer of legal uncertainty.
To plug the capacity gap in Europe, BYD is actively hunting for an existing auto factory in southern Europe. Spain has emerged as the leading candidate for an acquisition, a move that would fast?track local assembly and help the group sidestep the European Union’s new tariffs on Chinese electric vehicles. The shift from greenfield to buy?and?build underscores the relentless timetable: BYD wants to be building “true European cars” by as soon as next year.
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Yet even as it reorganises its production footprint, BYD is forging ahead with its product and charging offensive. A new plug?in hybrid, the Dolphin G DM?i, has been tailored for European buyers with an electric range of more than 100 kilometres. Alongside that, the company is rolling out its own fast?charging network, with the first stations live in Germany and Britain. Management aims to have more than 3,000 locations across Europe by the end of 2027.
Across the Atlantic, the company faces a separate front. The Pentagon placed BYD on a blacklist of Chinese military?linked companies on June 8, a classification the automaker has vehemently denied. A lawsuit challenging the designation is being prepared, and from June 30 BYD will lose access to US defence contracts. For now, the group says the move does not trigger broader sanctions or impair its global trading activities.
Back in China, the home market remains a bright spot. Management forecasts that electric vehicles will account for 80% of new car sales soon. In May, BYD shifted more than 160,000 vehicles abroad, a record driven by the new Blade battery technology that chairman Wang Chuanfu says will ease existing production bottlenecks. However, a brutal price war at home continues to squeeze margins, offsetting the top?line momentum and keeping the stock under pressure.
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