Mercedes-Benz Loses Key Share Support as Buyback Expiry and BMW Warning Deepen Sell-Off
20.06.2026 - 17:55:47 | boerse-global.de
Mercedes-Benz has lost an important cushion for its stock price. The Stuttgart-based automaker concluded its €2 billion share buyback programme in early June, repurchasing roughly 37.6 million shares at an average price of €53.19 each. The removal of that steady demand comes at an inopportune time: rival BMW's shock profit warning sent the entire German premium car sector into a tailspin, and Mercedes shares have been caught in the downdraft despite having issued no new guidance of their own.
The weekly performance tells a stark tale. Mercedes stock closed Friday at €45.09, up just over 1% on the day — a gain that does little to mask the 6.3% plunge over the past seven trading sessions. Year to date, the shares have lost nearly 27%. During the middle of the week, the stock touched a fresh five-year low, underlining how deeply the market has soured on Europe's legacy premium automakers.
Technical indicators flash warning signals. The share price now sits more than 18% below its 200-day moving average, and the relative strength index at 32.5 points to heavy selling pressure in the near term. With the buyback programme no longer providing a floor, investors are left to focus squarely on the operational outlook.
BMW's Warning Casts a Long Shadow
BMW slashed its full-year guidance on June 16, cutting its expected automotive EBIT margin from a range of 4% to 6% down to just 1% to 3%. The Munich-based group cited weakening demand in China, the ongoing Middle East conflict, and costs tied to efficiency measures. Although Mercedes-Benz has not issued a similar alert, the market now treats the two premium rivals as near-interchangeable when it comes to China exposure, pricing pressure, and margin erosion. The result: selling pressure without any fresh bad news from Stuttgart.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Mercedes itself last reaffirmed its 2026 outlook on April 29. The company still expects group revenue to match last year's level and full-year EBIT to come in "significantly above" the prior year's figure. Its cars division posted an adjusted return on sales of 4.1% in the first quarter, sitting within the targeted 3% to 5% band. But China remains the weak link. The automaker has acknowledged intense competition and tepid demand there, with gains in Europe and the US only partially offsetting the shortfall.
New Electric Van Hits the Market
On the product side, Mercedes is trying to inject fresh momentum. The fully electric VLE van is now available to order, with first deliveries slated for the summer. The model boasts an 800-volt architecture, up to 300 kW charging capacity, and a WLTP range of up to 713 kilometres. The entry price: €82,260. It represents a clear push to dominate the premium electric van segment, but whether that will translate into a meaningful earnings boost remains to be seen.
Parallel to the vehicle launch, the company has overhauled its board remuneration system. The new structure ties executive pay more closely to performance metrics, a move analysts see as an attempt to align management incentives with long-term shareholder value. The average analyst price target for Mercedes stock stands at roughly €60, implying more than 25% upside from current levels. Yet the wide gap between that target and the actual share price suggests the market is weighing structural headwinds — particularly in China — far more heavily than the product pipeline.
Mercedes-Benz at a turning point? This analysis reveals what investors need to know now.
What Lies Ahead
Investors will get their next update on July 14, when Mercedes holds a pre-close call ahead of its second-quarter results on July 28. The key question: can the company hold its own guidance range after BMW has effectively lowered the bar for the whole sector? With support from the buyback programme gone and technical conditions still fragile, the stock faces a test of whether its underlying business can withstand the spreading pessimism.
Ad
Mercedes-Benz Stock: New Analysis - 20 June
Fresh Mercedes-Benz information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
