BYD's Great Tang SUV Draws 150,000 Pre-Orders, Yet Dismal Margins and CATL's Dominance Sink the Stock
19.06.2026 - 17:38:12 | boerse-global.de
The Chinese electric vehicle maker BYD has a lot to boast about: 150,000 pre-orders for its new Great Tang luxury SUV, a flash-charging system that can top up the battery in minutes, and a factory in Hungary set to start production in the fourth quarter of 2026. None of that has stopped the shares from sliding into deeply oversold territory as investors focus on a grim first-quarter earnings report that exposed a widening profitability gap with battery supplier CATL.
BYD’s stock now trades at €8.90, barely two percent above its 52-week low of €8.82 and roughly 39 percent below the 52-week high of €14.80. The relative strength index has fallen to 25.6, pointing to an extreme oversold condition as the sell-off accelerates. All three major moving averages – the 50-, 100- and 200-day – sit well above the current price, with the 200-day average roughly 18 percent higher.
The relentless decline reflects a fundamental shift in how the market views BYD’s integrated business model. First-quarter revenue dropped nearly 12 per cent to 150.2 billion renminbi while net profit plunged 55 per cent to just 4.1 billion renminbi. Operating cash flow sank 67 per cent as a sluggish domestic market weighed heavily on results and rising exports failed to fill the gap.
Should investors sell immediately? Or is it worth buying BYD?
A comparison with battery giant CATL underscores the pain. CATL earned 20.7 billion renminbi in the first quarter, a 48 per cent jump, which is more than five times BYD’s quarterly net profit. Even when combining the profits of seven leading Chinese automakers – including BYD, Geely and SAIC – the total of 17.5 billion renminbi still falls short of CATL’s haul alone.
BYD is trying to change the narrative by moving upmarket. The Great Tang, unveiled on 17 June, is a seven-seat premium SUV with up to 496 horsepower in its base version and a combined 784 hp with a dual-motor setup. The long-range variant offers 950 kilometers of range under China’s CLTC standard. Its flash-charging technology can go from 10 to 70 per cent in five minutes and achieve a full charge in about nine minutes at compatible stations – a feature that should resonate in Europe, where BYD plans to launch the model by the end of 2026.
Europe is also the destination for BYD’s new factory in Hungary, which will begin production in the fourth quarter of 2026. Local assembly is a strategic hedge against EU punitive tariffs on Chinese EVs and gives the company a manufacturing foothold in one of the world’s biggest EV markets.
Yet product buzz and long-term factory plans do little to ease the immediate pressure. Investors now demand proof of stable margins, not just sales growth. If management cannot offset the domestic price war with more lucrative export revenues, the stock risks breaking decisively below the €8.82 floor – a level that currently marks the line between a severe correction and a full-blown rout.
Ad
BYD Stock: New Analysis - 19 June
Fresh BYD information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
