BYD's Stock Rout Deepens as Canada Entry and New EVs Fail to Offset China Weakness and EU Tariff Threat
Veröffentlicht: 27.06.2026 um 06:35 Uhr, Redaktion boerse-global.de
BYD is expanding into new markets and flooding showrooms with fresh models, yet its shares just keep sliding. The stock slumped to a fresh 52-week low of €8.08 in intraday trading before closing at €8.26, leaving the relative strength index at 20.3 – deep in oversold territory. Since the start of the year, the Chinese electric-vehicle giant has shed nearly a quarter of its market value, and the distance to July 2025's 52-week high of €14.80 now stands at roughly 44%.
The company is countering the headwinds with an aggressive push into North America. BYD is pursuing vehicle certification for two passenger models in Canada, aiming to open six dealerships this year and eventually reach around 20 locations. The rollout will begin in the Greater Toronto Area before expanding to Vancouver, Montreal and Calgary. Canada currently allows an annual import quota of 49,000 EVs from China at a modest 6.1% tariff, though Industry Minister Mélanie Joly has held talks with BYD and other manufacturers about potential local-production partnerships. While the market access provides a fresh growth story, it has done nothing to stem the selling pressure on the stock.
The real drag on sentiment comes from Europe and BYD's home market. The European Union is investigating the imposition of punitive tariffs on Chinese hybrid vehicles, a segment that accounts for a significant share of BYD's sales on the continent. In China, domestic demand for BYD's vehicles slumped by nearly 25% in the latest period, exacerbated by the partial removal of an EV purchase-tax exemption that took effect in January 2026 and a brutal price war that is squeezing margins across the industry.
Should investors sell immediately? Or is it worth buying BYD?
Overseas deliveries tell a brighter story. In May, BYD shipped 160,644 vehicles internationally, a surge of 80.4% year-on-year that snapped an eight-month streak of negative comparisons. The export strength prompted UBS to reiterate its buy rating on the H-shares in mid-June and raise its price target to HK$135, citing improving overseas demand and a more stable position in China. Yet the market remains fixated on the domestic and European risks.
BYD is also refreshing its product lineup at home and abroad. Its Denza sub-brand began delivering the N8L, a fast-charging SUV with 430 kilometres of pure electric range and over 1,500 kilometres of combined range, on Friday. At the European Smart Energy Exhibition in Munich, BYD Energy unveiled a home-storage ecosystem targeting households and small businesses. The Seal 08 sedan is scheduled for an official launch on July 2. New models alone, however, cannot reverse the broader bearish momentum.
Until the tariff uncertainty from Brussels is resolved and the Chinese market shows signs of recovery, the downward pressure on BYD's shares looks set to persist. The Canadian expansion and a packed product pipeline offer long-term promise, but for now, the market is pricing in margin compression and trade risks with little appetite to look beyond them.
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