BYD’s Pre-Order Blitz and Profit Wipeout: The Two Sides of a Chines EV Giant’s Story

The buzz around BYD right now is loud and contradictory. On one side, more than 100,000 buyers have already placed deposits for the upcoming Datang SUV, a model that signals the company’s most aggressive push into the premium electric-vehicle segment yet. On the other, the first-quarter earnings report landed like a cold splash: net income slumped 55% to 4.09 billion yuan, vehicle deliveries fell 30% to roughly 700,000 units, and automotive revenue dropped 20%.

That disconnect explains why the H-shares are trading at 91.30 Hong Kong dollars, down about 16% from a month ago and roughly 7% lower year-to-date. Investors are looking past the pre-order frenzy and focusing on the numbers that just came out.

The Q1 pain had clear causes. China tightened its EV subsidy rules earlier this year, and many buyers rushed purchases into the fourth quarter of 2025 to lock in the old incentives. That pulled demand forward, leaving the first quarter unusually weak. Seasonality amplified the effect.

But analysts see this as a trough, not a trend. For the second quarter, the consensus calls for deliveries of around 1.1 million vehicles, automotive revenue of approximately 163 billion yuan (a 5% year-on-year increase), and net profit jumping 59% to 10.1 billion yuan. The rebound is expected to come from a wave of new models and expanding international sales — especially as BYD ramps up production outside China.

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The Datang SUV, set to launch on June 15, is the flagship of that new-model offensive. Produced in Xi’an under the Dynasty line, it will be offered as a pure electric version with the second-generation Blade battery and as a plug-in hybrid with a 1.5-litre turbo engine. Prices range from 250,000 to 320,000 yuan (about €32,000 to €41,000). Inside, the seven-seat layout follows a 2+2+3 configuration, with zero-gravity front seats, a 3-nanometre cockpit chip, and a 27-speaker system from Devialet. The 100,000 pre-orders racked up in just two weeks underscore strong appetite, though whether BYD can hold that momentum through to delivery remains the question.

Alongside the Datang, the Sealion 06 DM-i — a plug-in hybrid from the Ocean series — offers a claimed all-electric range of up to 310 kilometres and a combined range of 1,845 kilometres. It is available with an optional lidar-based driver-assistance system.

Then there is the Dolphin G, BYD’s smallest plug-in hybrid, designed specifically for overseas markets including Europe. With a combined range of over 1,000 kilometres, it is positioned to take on conventional hybrid city cars. It may be among the first models built at BYD’s new factory in Szeged, Hungary.

On the technology front, the company recently unveiled its Xuanji A3, a 4-nanometre chip for autonomous driving that BYD says is China’s first domestically developed silicon of its kind. It is designed to enable L3 and L4 functions, with a long-term ambition of zero traffic accidents. The chip launch, however, came as the share price was already under pressure from the earnings miss, and the market reaction was muted. Whether the technology story gains traction will likely depend on convincing Q2 results.

BYD at a turning point? This analysis reveals what investors need to know now.

Corporate events in the coming days add another layer. The annual general meeting is scheduled for June 9, followed by the ex-dividend date on June 11. The board has proposed a dividend of 0.358 yuan per share for the 2025 fiscal year, payable by the end of July.

BYD’s challenge is to translate its ambitious product pipeline and technological advances into a convincing financial recovery. The Datang SUV and the overseas push give it a strong narrative, but the next quarterly report will be the real test.

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