Meta Seeks Legal Shield From Child-Harm Lawsuits Amid KOSA Talks 
Apple Signals Product Price Hikes Amid Rising Memory Chip Costs 
Hyundai to Acquire SoftBank’s Remaining Boston Dynamics Stake for $325 Million 
Google Gemini Co-Lead Noam Shazeer Leaves for OpenAI Amid AI Talent Race 
G7 Explores AI Access Deal With U.S. Amid Anthropic Restrictions 
Kingboard Holdings Shares Surge After HK$11.77 Billion Block Trade to Expand PCB and AI Supply Chain Business 
Samsung Gains Interest from BYD, Google, AMD as AI Chip Demand Strains TSMC Capacity 
SpaceX Surpasses Amazon in Market Value as Post-IPO Rally Accelerates 
HSBC Australia Faces A$35M Penalty Over Scam Protection Failures 
Ukrainian Drone Makers Target Japan and Asia Defense Market 
Carro Expands Into Australia With Acquisition of Used-Car Platform CarPlace 
US Raises Concerns Over Possible ASML EUV Machine Transfer to China 
Google’s Open-Source AI Data Center Cooling Design Raises Commoditization Concerns 
Saudi Aramco Explores Sulphur Business Stake Sale to Raise Billions 
Qantas Unveils Wellness-Focused Nonstop Sydney-London Flights to Reduce Jet Lag 
TD Bank Expands Employee Monitoring Software to Boost Productivity Amid Privacy Concerns 
Shares of Chinese electric vehicle giant BYD (HK:1211) fell 3.6% to HK$409.80 on Tuesday, extending losses from last week’s record highs. The decline reflects growing investor concerns over aggressive price cuts in China’s EV market, which could erode profit margins amid intensifying competition.
BYD's drop weighed heavily on the Hang Seng index, which slipped 0.2%. Other Chinese EV makers also saw declines, with Xpeng (HK:9868), NIO (HK:9866), Li Auto (HK:2015), and Leapmotor (HK:9863) losing between 1.7% and 3%. Geely (HK:0175) also slid 3.2%.
The pressure follows a new round of price reductions and promotional incentives announced by BYD and several of its rivals, fueling fears of a deepening price war. While BYD recently received praise for offering driver-assistance technology for free on select lower-cost models, investors worry about the potential impact on earnings, particularly if margins shrink further.
The selloff also comes amid profit-taking after BYD hit all-time highs last week, driven by optimism over its overseas growth. Notably, BYD surpassed Tesla (NASDAQ:TSLA) in EV sales across Europe for the first time in April, marking a significant milestone after having already overtaken Tesla in China last year.
European data released Tuesday showed Tesla’s sales in the region plummeted nearly 50% in April, underscoring BYD's growing market share abroad. However, with the domestic landscape turning increasingly price-sensitive, analysts remain cautious about near-term profitability for Chinese EV makers.
As the Chinese EV price war heats up, investors are closely monitoring how companies like BYD balance market share expansion with sustainable margins in an increasingly competitive environment.
