BYD's R&D Bill Overtakes Nine-Month Profit as Q3 Earnings Miss and Brussels Raises Security Questions
Published on 11/08/2026 at 19:41 | Editorial boerse-global.de
BYD spent more on research and development in the first nine months of 2026 than it earned. Executive vice president He Zhiqi put the R&D outlay at 36.3 billion RMB for the period, against a net profit of 22.3 billion RMB, according to media reports citing his remarks on 1 November. Cumulative R&D spending has now passed 280 billion RMB, he said.
The disclosure landed alongside quarterly results that fell short of what analysts had pencilled in. Net profit for the third quarter of 2026 came in at 10.02 billion yuan, below estimates ranging from 11.4 billion to 12.95 billion yuan. Revenue rose 13.6% to 221.5 billion yuan, but that too trailed consensus.
Heavier dealer discounts on older models weighed on average selling prices, and competition has sharpened both at home and in export markets. Hong Kong-listed shares came under pressure on 30 October after the figures were released.
Should investors sell immediately? Or is it worth buying BYD?
Deliveries keep rising, but the home market lags
Volume tells a brighter story. BYD sold roughly 490,000 new-energy vehicles in October, up 10.97% year on year, according to company figures reported about a week ago. Growth nonetheless slowed from September, Reuters noted, with overseas business offsetting soft domestic demand and aggressive price competition.
Exports doubled, climbing 102.8% to about 170,000 vehicles. For January through October, BYD delivered around 3.6 million vehicles — a tally still 2.16% below the prior-year level.
A record run and a new flagship in Abu Dhabi
Product news has continued apace. BYD's Yangwang brand unveiled the Altior, a fully electric flagship sedan, in Abu Dhabi, a launch confirmed through BYD's UK press office. The same event carried a second announcement from the emirate: a speed record recognised by the FIA. The U9 Xtreme hit 503.17 km/h on 1 November, per BYD and the FIA, with Yangwang publishing the record on Friday.
European lawmakers seek a security review
Politics is intruding on the European push. Members of the European Parliament asked the European Commission on Wednesday to assess potential security risks in BYD vehicles, Reuters reported, weighing measures that could extend as far as exclusion from public tenders. BYD told Reuters that vehicle data is not made accessible to China-based group companies or third parties there. The lawmakers' request calls for a review of possible steps; no restrictions have been adopted.
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BYD Stock: New Analysis - 8 November
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
