BYD's Stock Boost Fades as Domestic Sales Drop and International Growth Falters

BYD, the Chinese electric vehicle and battery manufacturer, finds itself in a precarious position. Despite a recent stock market boost due to hopes of avoided tariffs, the company is grappling with decreasing sales and profits in its home market, and international growth has yet to provide a significant breakthrough.

BYD's domestic market has been weakening, with sales and profits dropping for the first time in years. This decline cannot be offset by international sales growth, keeping the stock at a low level. While the company has seen impressive sales increases in some European countries, absolute numbers remain modest. Bulls have digested the weekend shock but are not yet aggressively challenging chart resistance for BYD stock.

The company's growth in sales numbers is no longer convincing, and margins are decreasing due to intense price competition. BYD is facing pressure beyond tariffs, with these internal struggles affecting its stock market performance. Asian markets, including BYD's, were affected by U.S.-China verbal escalations but recovered after U.S. President Donald Trump's conciliatory tone towards Beijing. However, the situation remains unpredictable, with Trump's actions hard to predict with certainty.

BYD's international business is expected to bring new momentum, with BYD's Executive Vice President, Stella Li, playing a significant role in international developments. However, a major breakthrough has not yet been achieved. Despite a recent stock market rise due to hopes of avoided tariffs, BYD must address its domestic sales decline and intense price competition to regain momentum.