For every step forward in the showroom, BYD appears to take a step back on the trading floor. The Chinese electric-vehicle giant’s latest premium SUV, the seven-seat DaTang, has racked up 150,000 pre-orders before its official launch and converted roughly 90,000 of those reservations into firm purchases within the first 72 hours of market availability. Yet the equity keeps sliding, battered by a deepening trade dispute with the European Union and persistent concern over margin erosion in China’s cut-throat pricing environment.
The DaTang is BYD’s boldest push yet into higher-margin territory. Priced at up to 310,000 yuan, the model offers a maximum range of 950 kilometres, underpinned by a new high-voltage architecture. A key selling point is charging speed: the company’s proprietary fast-charging technology can replenish the battery from nearly empty to full in just nine minutes under ideal conditions. To support such claims, BYD is aggressively rolling out infrastructure, with plans to have 20,000 of its own charging stations operational nationwide by the end of 2026.
That domestic momentum, however, is being overshadowed by geopolitics. The European Union recently slapped a 17% compensatory tariff on BYD’s electric vehicles, which Brussel’s says is a response to subsidised competition. Chinese Premier Li Qiang pushed back at the World Economic Forum in Dalian on June 24, arguing that the country’s technological rise and competitiveness stem from a vast home market and pure innovation, not unfair state aid. For BYD, the stakes are high: in May the company sold roughly 383,500 vehicles with alternative powertrains, of which more than 160,600 were exported. These export volumes, vital for offsetting a 20% year-on-year decline in global sales to around 1.4 million units in the first five months, make BYD acutely vulnerable to any further trade barriers.
Should investors sell immediately? Or is it worth buying BYD?
The stock market has taken note. Shares closed Wednesday at €8.61 and have since eased further to €8.52, leaving the paper down 22% since the start of the year. The 52-week low of €8.37 is now dangerously close, and a break below that support level could trigger additional technical selling. The relative strength index has dipped to 24.4 in recent sessions after registering 25.4 midweek, signalling a deeply oversold condition – though a meaningful bounce has yet to materialise.
What might turn the tide? The market is now waiting for official delivery data for the DaTang. A smooth production ramp-up and strong sales of this margin-rich model could finally provide the catalyst the shares desperately need. Until the tariff fog lifts, however, BYD’s export engine remains a risk factor, and the stock is likely to stay under pressure.
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