BYD’s Twin Offensives: Outselling Tesla in Europe While Targeting Japan’s Sacred Kei-Car Turf
Published on 07/29/2026 at 07:21 | Redaktion boerse-global.de
The diverging fortunes of BYD and Tesla have rarely been starker. Over the past month, BYD’s stock has surged roughly 22 percent while Tesla’s has slumped a comparable 23 percent — a split that reflects not just market sentiment but a concrete shift in the competitive landscape. On Tuesday, BYD shares closed at €10.15, up 2.04 percent on the day, extending a recovery that has lifted the stock 26.39 percent from its late-June low of €8.03.
The catalyst for this divergence is playing out on two continents simultaneously. In Europe, BYD has achieved a symbolic milestone: for the first time, it registered more new vehicles than Tesla in the first half of the year. According to preliminary data from the European manufacturers’ association, BYD posted 174,144 new registrations — a 145.5 percent jump year-on-year — edging past Tesla’s 170,351 units, which grew 54.6 percent. The margin is slim at roughly 3,800 vehicles, and Tesla still led in June alone with 52,563 registrations versus BYD’s 38,455. But BYD’s growth rate in that month was nearly three times Tesla’s, underscoring the trajectory.
Meanwhile, BYD is opening an entirely new front in Japan. On Tuesday, the company unveiled the Racco, a fully electric kei-car — the ultra-compact vehicle category that accounts for nearly 40 percent of all new car sales in Japan. With a starting price of ¥2.145 million (roughly $13,100), and dropping below ¥2 million after a ¥150,000 government subsidy, the Racco undercuts Nissan’s Sakura, Japan’s current best-selling EV, which retails for about ¥2.44 million. BYD also offers superior range: 210 kilometres on the WLTC cycle versus the Sakura’s 180.
The Racco is not BYD’s first foray into Japan — it entered the passenger car market in 2022 and began selling the Atto 3 in January 2023 — but it represents a direct assault on the domestic strongholds of Toyota, Honda, and Nissan. BYD is backing the launch with a targeted retail strategy: small showrooms featuring just one or two models in regional cities with populations under 500,000, aiming for rural areas where demand for mini-EVs is strongest. The company has already announced plans for an eight-model lineup in Japan, including two hybrid models unveiled in January.
Should investors sell immediately? Or is it worth buying BYD?
The international push comes at a cost. In June, BYD sold 403,472 battery-electric and plug-in hybrid vehicles globally, up 5.46 percent year-on-year — the second consecutive month of growth. But the engine of that growth is clearly overseas, where exports hit a record 175,349 units, nearly double the prior-year figure. At home in China, sales slumped 22.02 percent to 228,123 units, and the profit picture remains the more troubling concern. First-quarter unaudited revenue fell 11.8 percent to ¥150.23 billion, net profit plunged 55.4 percent, and operating cash flow shrank 67.5 percent.
That tension — booming exports versus a softening home market and margin pressure from China’s price war — is what investors are weighing. The stock currently trades 4 percent below its 200-day moving average of €10.57, and remains 28.94 percent below its 52-week high of €14.25 from July 2025. On a year-to-date basis, the shares are still down 5.41 percent, despite the recent rally. With an annualised 30-day volatility above 40 percent, the stock remains prone to sharp swings.
Volkswagen CEO Oliver Blume captured the broader anxiety among established European manufacturers, noting that “we are getting more and more risks” from over 150 Chinese competitors vying for market share. For BYD, that competitive wave is a tailwind rather than a threat — at least for now.
BYD at a turning point? This analysis reveals what investors need to know now.
The next quarterly report, expected in late August, will test whether the export boom is translating into improved profitability. Until then, monthly sales figures and the pace of expansion in Europe and Japan — against both Tesla and a growing field of Chinese rivals — are likely to dictate the stock’s direction.
Ad
BYD Stock: New Analysis - 29 July
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
