Shares of BYD set to open down 5% in Shenzhen

Shares of BYD set to open down 5% in Shenzhen

Shares of BYD (HK:1211) are expected to open down by 5% in the Shenzhen Stock Exchange on July 2, 2025. The downward trend is driven by several factors, including recent earnings reports and market sentiments.

According to the latest financial data [1], BYD's stock price has been volatile, with the 52-week range falling between HK$72.33 and HK$159.27. The company's market capitalization stands at $1.09 trillion, and its enterprise value is HK$1.05 trillion. The company reported a net profit of Rmb15,016m in the fourth quarter of 2024, a 73% increase year-on-year [1].

However, there are concerns among investors regarding the company's expansion plans in India. BYD is planning to set up its first India EV factory near Hyderabad, aiming for 600,000 cars yearly by 2032, which could significantly boost their global presence. Nevertheless, political risks in India might require the company to find a local partner to manage these risks [1].

Additionally, Tesla's (TSLA) recent sales decline in Europe has put pressure on BYD's stock price. In July, BYD sold more cars in Europe than Tesla, indicating Tesla's continued loss of market share in the region [2]. This has led to a decrease in investor confidence in both companies.

Analysts have mixed views on BYD's stock. Some believe that the company's expansion plans and operational efficiency will drive growth, while others are concerned about political risks and the company's mass-market image [1].

In conclusion, BYD's stock price is expected to open down by 5% in Shenzhen due to a combination of earnings reports, market sentiments, and political risks. Investors should closely monitor the company's earnings report scheduled for August 30, 2025, to gauge its future performance.



References:
[1] https://www.tipranks.com/stocks/hk:1211
[2] https://www.wsj.com/articles/byd-outsells-tesla-in-europe-in-july-wsj-reports-1d-ago