BYD's Tech Offensive: 4nm Chip and 11.275 GWh Storage Deal, but Domestic Headwinds Persist
Published on 07/11/2026 at 12:16 | Redaktion boerse-global.de
BYD rolled out two major technological announcements within days this month, underscoring its ambitions both on the road and in the grid. The Shenzhen-based automaker revealed that its in-house 4-nanometer driver-assistance chip has entered series production, while its energy-storage unit signed a landmark contract with Abu Dhabi’s Masdar for 11.275 GWh of battery capacity. Yet the stock, which added 3.01% on Friday to close at €9.58, remains deep in the red for the year as domestic headwinds and a sharp profit drop weigh on investor sentiment.
The vehicle intelligence chip, which combines three die units to deliver more than 2,100 TOPS of aggregate computing power, supports autonomous driving levels L3 and L4. BYD has also started shipping its own battery-management AFE chip in volume, crossing the 100 million unit mark. Complementing the hardware push, chairman Wang Chuanfu in late May announced that BYD would be the first manufacturer to assume liability for L3 and L4 functions even when the vehicle is operating in Level 2 mode, with a one-year safety guarantee for its urban navigation assist system. A real-world test came soon after: following an accident involving a Denza Z9GT, BYD settled the claim within 24 hours and accepted full, unlimited liability. As of end-March 2026, cumulative sales of vehicles equipped with the God Eye and Qiankun (co-developed with Huawei) assistance systems had exceeded 2.85 million, generating over 180 million kilometres of driving data daily.
On the energy-storage front, BYD's Haohan system, featuring a new blade battery cell with 2,710 Ah capacity — a more than 300% increase over the previous generation and an 80% reduction in battery-management complexity — will power the Masdar project in Abu Dhabi, developed jointly with state utility EWEC. The goal is to create the world’s first gigawatt-scale renewable energy plant capable of round-the-clock output. The deal follows a previous 12.5 GWh contract in Saudi Arabia, cementing BYD’s foothold in Middle Eastern storage markets.
Production is accelerating too. On 8 July 2026, BYD became the first automaker globally to build 17 million new-energy vehicles. The milestone vehicle, a Seal 08 sedan, rolled off the line in Xi’an. The company had reached 16 million in April, meaning it added a million units in under three months. The Seal 08, with a range of up to 905 kilometres, went on sale at the end of June.
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Yet the technological and production momentum masks a deteriorating financial picture. In the first quarter of 2026, revenue fell to 150.2 billion yuan, down 11.82% year-on-year, while net profit plummeted 55.38% to 4.085 billion yuan, hurt in part by a 2.1 billion yuan foreign-exchange loss. The weakness extends to full-year 2025: despite selling 4.6 million vehicles, net profit slipped 18.97% to 32.6 billion yuan, operating cash flow nearly halved to 59.14 billion yuan, and inventories reached a record 160.4 billion yuan. Domestic sales are estimated to have fallen by roughly 30%, and more than 40% of dealers are reportedly losing money. The price-to-earnings ratio, once as high as 249, has compressed to around 10. Under US GAAP, BYD posted earnings per share of $0.06, a penny shy of the $0.07 consensus, though revenue of $21.77 billion beat expectations of $21.05 billion.
The stock’s chart reflects the strain. At Friday’s close, the shares were 12.55% lower since the start of the year and 26.87% lower over the past twelve months. They trade 35.27% below the 52-week high of €14.80 set on 22 July 2025, and only 19.29% above the year’s low of €8.03 touched on 30 June 2026. The 14-day RSI stands at 55.8, neutral-to-bullish after Friday’s rebound, but the stock remains below its 50-day moving average of €9.76 and well under the 200-day line of €10.70. Annualized volatility over the past 30 days is 41.67%.
Overseas markets are providing a crucial counterweight. BYD exported 471,091 vehicles in the first half of 2026, an 82.5% jump that accounted for 42.5% of total sales. In Europe alone, April registrations hit 27,008, more than double Tesla’s 10,654 for the same month. June exports reached 175,349 units. The company is also expanding financing options: in early July it launched BYD Finance in South Africa with Absa, covering vehicle loans and wholesale finance for 52 dealers initially, rising to 80 by year-end. South Africa’s NEV sales surged 78.8% from January to May, with BYD ranking second with 2,011 units.
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Wang remains bullish on global scale. At the annual general meeting in June he reiterated the target of becoming the world’s largest automaker by volume within five years, with overseas shipments of more than 1.6 million vehicles in 2026. To support that ambition, BYD’s premium Denza brand has filed paperwork for the Z9S, a battery-electric sedan measuring 5,090 mm in length with a 3,025 mm wheelbase and up to 370 kW of motor power, positioned to rival the Xiaomi SU7. The tri-motor Denza N8 SUV, producing 890 kW system power, is also headed for registration.
European expansion, however, is taking a more cautious turn. Vice-president Stella Li confirmed that the planned multibillion-dollar factory in Turkey is paused for now, with priority shifting to the plant in Szeged, Hungary, where vehicle assembly is slated to begin in the fourth quarter of 2026. The company is also evaluating the acquisition of existing factories in southern Europe to accelerate regional production and mitigate evolving EU trade rules on Chinese EVs. The strategy underscores how geopolitical headwinds now shape BYD’s international trajectory as much as its technology does.
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BYD Stock: New Analysis - 11 July
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