While BYD continues to hold its title as the world’s leading electric vehicle manufacturer, its latest financial results reveal the staggering price of this victory. The Chinese automotive giant’s aggressive pursuit of market share is coming at a direct cost to its bottom line, sending shockwaves through the investment community and raising serious questions about the sustainability of its growth narrative.
Purchased Prestige at a Premium
The battle for electric vehicle supremacy is proving financially draining. Recent quarterly data confirms BYD maintained its position as the top global seller of battery-electric vehicles (BEVs) in Q3 2025. However, this achievement is shadowed by a deeply concerning profitability crisis. The company reported a staggering 33% year-over-year profit collapse, laying bare the brutal reality of China’s ongoing price war. This strategy of buying market presence at the expense of returns is rapidly eroding the firm’s financial resilience.
Even the volume metrics show emerging vulnerabilities:
* Global BEV Market Share: 15.4% (ranking first ahead of Tesla at 13.4%)
* Q3 BEV Sales: 582,522 units
* Warning Sign: Sales declined by 4% compared to the previous quarter, while Tesla’s deliveries surged by 29% over the same period.
The gap with its American rival is narrowing at an alarming rate. Investors are navigating turbulent waters, with the stock’s approximate 35% value erosion over the past six months telling a clear story.
Should investors sell immediately? Or is it worth buying BYD?
Hybrid Segment Loses Momentum
More alarming than the general margin compression is the pronounced weakness in BYD’s plug-in hybrid electric vehicle (PHEV) division, traditionally a core strength for the conglomerate. Although BYD retains a dominant market leadership position of nearly 28% in this segment, the competitive dynamics have shifted. Rivals including Aito and Geely are mounting an aggressive assault with feature-rich models, directly challenging BYD’s established territory.
The third-quarter figures are sobering. Plug-in hybrid sales collapsed by a substantial 23.73 percent to 523,069 units. This demand contraction in a fundamental business division stands as a primary driver behind the current instability in the company’s share price.
Critical Support at €10
Company leadership is now attempting to counter these headwinds through accelerated European expansion. The unveiling of the Atto 2 DM-i in Barcelona represents a strategic push to decrease reliance on the saturated domestic Chinese market. Whether this offensive can materialize quickly enough to bolster the financial statements remains uncertain, particularly as the European Union continues to scrutinize Chinese imports with protective measures.
From a technical analysis perspective, the situation is becoming critical. The stock is currently battling to maintain the psychologically significant €10 support level. A decisive break below this threshold could trigger automated technical selling, potentially accelerating the downward momentum. Without a rapid recovery in profitability, a technical breakdown appears increasingly imminent.
Ad
BYD Stock: Buy or Sell?! New BYD Analysis from November 25 delivers the answer:
The latest BYD figures speak for themselves: Urgent action needed for BYD investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 25.
BYD: Buy or sell? Read more here...
