BYD (HKG:1211) shares closed the week at HK$88.65 on Friday, July 24, 2026, a marginal 0.06% decline. The stock remained largely flat despite the company surpassing Tesla (NASDAQ:TSLA) in European registrations during the first half of the year, highlighting investor caution amid ongoing weakness in its home market.
European registrations for BYD totaled 174,144 vehicles in the first six months, a 145.5% surge compared to the same period last year, according to provisional data from the European Automobile Manufacturers’ Association (ACEA). This figure exceeded Tesla's 170,351 registrations by 3,793 units, though Tesla maintained a lead in June with 52,563 registrations versus BYD's 38,455. Both companies held a 2.4% market share in Europe.
BYD's export momentum accelerated in June, with preliminary figures showing 175,349 vehicles shipped abroad, up 94.7% year-over-year. Exports accounted for 43.5% of BYD's global sales of 403,472 vehicles in June, a significant jump from an estimated 23.5% a year earlier. This shift underscores the growing importance of international markets to BYD's overall sales mix.
However, the strength overseas was tempered by a sharp decline in China, where sales dropped 22% in June. While global sales rose 5.5% for the month, total first-half sales fell 15.7% to 1.81 million vehicles. Sales of battery-electric vehicles slipped 15.2% in the first half, while plug-in hybrids declined 16.5%.
Investor sentiment remains cautious as earnings continue to lag. BYD's unaudited first-quarter revenue fell 11.8% to 150.23 billion yuan, net profit dropped 55.4%, and operating cash flow declined 67.5%. The company's stock is trading 32.8% below its 52-week high but has recovered 24.2% from its June 30 trough of HK$71.40.
BYD's performance relative to the broader Hong Kong market was weak, underperforming the Hang Seng Index, which rose 1.63% for the week, by approximately 1.69 percentage points. Trading volume on Friday was 13.6 million shares, about 50% of the 65-day average.
The competitive landscape in Europe is intensifying as Chinese automakers expand their presence. Volkswagen (ETR:VOW3) CEO Oliver Blume recently noted, "When we look to the future, we have more and more risks coming," pointing to over 150 Chinese competitors. European firms are increasingly cutting costs to respond to the challenge.
Looking ahead, BYD's final dividend of HK$0.41141 is due for distribution on Friday, July 31. Market attention will shift to July sales, export, and Chinese demand data for further signals on the company's trajectory. Risks include provisional European registration data, price competition in China, and expenses related to international expansion.
