BYD Co., a major Chinese automaker, has sparked a $20 billion stock selloff with its recent price cuts. The move, part of an electric vehicle (EV) price war, has raised concerns over the company’s strategy and ability to meet its sales targets.
BYD aims to sell 5.5 million vehicles this year, but its latest features have drawn lukewarm consumer response in China’s sluggish economy. Rivals such as Xpeng Inc. and Zhejiang Leapmotor Technology Co. are gaining market share, with their stocks outperforming BYD’s. This shift in the market has taken some steam out of BYD’s big rally, highlighting skepticism over its pricing strategy.
Source: https://www.bloomberg.com/news/articles/2025-06-06/byd-s-misfire-with-price-cuts-sparks-20-billion-stock-selloff