BYD’s Bold 5?Year Superpower Bid Meets Pentagon Blacklist and Factory Pivot
13.06.2026 - 20:24:22 | boerse-global.de
The contradiction between BYD chairman Wang Chuanfu’s ambition and the stock’s trajectory could hardly be starker. While Wang declared on June?10 that the Chinese EV maker will overtake Toyota and become the world’s largest automaker within five years, the shares limped to a fresh 52?week low just two days later. On Thursday the stock touched €9.25, barely holding above that floor, before closing Friday at €9.49. Since the start of 2025, BYD has lost roughly 13?% of its value; on a 12?month basis the decline deepens to almost 37?%.
The slide has pushed the relative strength index to 33.7, a reading that usually signals oversold conditions. Yet both the 50?day moving average at €10.85 and the 200?day average at €10.99 remain well above the current price, underscoring that the downtrend is more than a short?term wobble. The pressure comes from a tangle of operational, geopolitical and regulatory headwinds that are testing the company’s global expansion plans almost as fast as it unveils them.
Pentagon Listing Ups the Stakes in the US
Days before the stock hit its trough, the US Department of Defense placed BYD on a military?company blacklist on June?8. The company denies any ties to the defence industry and is preparing a legal challenge against the designation. From June?30, BYD will lose access to US defence contracts, though broader trade restrictions have not yet materialised. The Pentagon move adds a fresh layer of uncertainty for investors already assessing the company’s ability to navigate Europe’s tariff regime, and the timing — coinciding with the ex?dividend date — amplified the sell?off.
Should investors sell immediately? Or is it worth buying BYD?
Europe Factory Strategy: Hungary Timetable Holds, Turkey Shelved, Spain in Play
BYD confirmed on June?12 that its first European assembly plant in Hungary remains on track to start production in the fourth quarter of 2026. To concentrate resources, the company has put its plans for a second factory in Turkey on ice. Instead, vice?chairwoman Stella Li is actively searching for an existing car plant to buy in southern Europe, with Spain emerging as the front?runner. Acquiring a ready?made facility would not only save time but also provide a faster route to bypass the European Union’s new tariffs on Chinese?built EVs. The shift signals a deliberate focus on the European core market rather than a scatter?gun expansion.
Sales Record vs. Price War Margin Squeeze
The operational headlines are not all negative. In May, BYD sold more than 160,000 vehicles overseas, a year?on?year jump of 80?%. Wang is betting on a next?generation Blade battery to lift production capacity and on a fast?charging network to differentiate the brand. But the ferocious price war in China is eating into margins, and despite the export surge the earnings outlook remains under pressure. At the annual general meeting on June?9, shareholders approved a dividend of HK$0.41141 per share, which went ex?dividend on June?11 — the same day the stock began its slide towards the year low.
Technically, the support at €9.25 will be the first test for any rebound attempt. If that level holds, the combination of an oversold RSI and a clear catalyst — such as progress on the European factory acquisition — could trigger a counter?move. For now, Wang’s five?year vision is being judged against a very different near?term reality, one in which every step forward in global reach is matched by a new barrier.
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