BMWâs sprawling plant in Spartanburg, South Carolina, is emerging as a strategic counterweight to the turmoil in Chinaâs auto market. The Munich-based manufacturer is pouring $1.7 billion into the site and a new battery facility in Woodruff, building its next-generation X5 with five powertrain options â from pure combustion to hydrogen. The flexible production setup shields the company from the volatile swings in electric vehicle demand that have rattled peers. By the end of 2026, the plant will start assembling the fully electric iX5, the first of at least six EV models planned for US production by 2030.
The strategy is already showing results on the sales front. BMW moved nearly 103,000 vehicles in the United States during the second quarter, a 13% year-over-year increase. Plug-in hybrids powered much of that growth, with deliveries surging almost 23%. The jump offset a 18% decline in pure electric vehicle sales, which the company attributed to a gap in model availability as customers await the iX3 and i7. Both conventional sedans and light SUVs also posted double-digit gains.
Investors rewarded the update. BMWâs stock climbed 3.38% on Thursday to âŹ60.48, pulling away from the 52-week low of around âŹ57 hit just days earlier. Despite the bounce, the shares have lost 36.95% since the start of the year and trade roughly 27% below their 200-day moving average. The relative strength index sits at 34.5, pointing to a moderately oversold condition that leaves room for a technical snapback.
Should investors sell immediately? Or is it worth buying BMW?
Bernstein Research analyst Stephen Reitman reiterated an âOutperformâ rating on the stock with a price target of âŹ85, seeing significant upside from current levels. He described the US business as âextremely strongâ and running against the broader industry trend. Reitman also gave a thumbs-up to new CEO Milan Nedeljkovic, who took the reins from Oliver Zipse in mid-May. At his first investor meetings, Nedeljkovic dispensed with spin â laying out the harsh realities of stricter CO2 regulations, international tariffs, and Chinaâs brutal price war, while offering concrete action plans. The candid approach is gradually restoring credibility after the profit warning BMW issued in June.
Behind the scenes, BMW has streamlined its capital structure. The conversion of preference shares into ordinary shares was completed on June 30, with the technical booking into investor portfolios expected by July 3. The consolidation of share classes should boost liquidity in the DAX over the long run. For now, though, the chart remains under pressure. Thursdayâs rally offers a reprieve, but the broader correction â set in motion by margin erosion and Chinese discount battles â will require sustained operational wins to reverse.
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