BYD Shares Drop 6% After Record High Amid EV Price Cuts

Hong Kong-listed shares of Chinese electric vehicle giant BYD Co (HK:1211) fell as much as 6% on Monday as investors moved to take profits following a sharp rally. The stock had surged nearly 75% year-to-date, hitting an all-time high of HK$477.80 last Friday. By 02:34 GMT, shares were trading 5% lower at HK$441.80.

The decline comes after BYD announced major discounts across its EV lineup over the weekend in a bid to boost domestic sales. While the price cuts are expected to stimulate demand in the short term, they have sparked concerns about thinning profit margins. Analysts warn that BYD’s aggressive pricing strategy could weigh on earnings despite its market share growth.

Still, the company remains a dominant force in the global electric vehicle industry. BYD has ambitious plans to expand internationally, targeting over 800,000 overseas unit sales in 2025. This expansion strategy is part of BYD’s broader push to compete with rivals like Tesla in key international markets, including Europe and Southeast Asia.

Despite the recent selloff, investor sentiment toward the stock remains largely bullish, driven by BYD’s strong fundamentals and long-term growth prospects. However, heightened competition and margin pressure from price wars in China’s EV sector could introduce volatility.

BYD’s performance continues to be closely watched by investors and analysts, especially amid fluctuating demand, global expansion efforts, and the ongoing price competition in the electric vehicle space. As the world’s largest EV maker by volume, BYD’s pricing decisions and market movements play a critical role in shaping the sector’s direction.