BYD Stock (BYDDY) Plunges after Brazil Sues it Over ‘Slave Like Conditions’

Shares in Chinese EV maker BYD (BYDDY) plunged nearly 10% today after being accused of operating slave-like conditions in Brazil.

Chinese Workers Rescued

The Public Labour Prosecutor’s Office (MPT) in the state of Bahia said it was suing BYD and two of its contractors, accusing them of human trafficking and creating conditions “analogous to slavery” at a factory construction site.

The MPT said it had rescued 220 Chinese workers after receiving an anonymous complaint. It is now seeking $45.5 million in damages from the three firms.

The MPT said work at the construction site had been halted late last year after workers were found living in cramped accommodation with minimal comfort and hygiene conditions.

It is reported that some workers slept on beds without mattresses and one toilet was shared by 31 people.

There are also allegations that staff had their passports confiscated, were working exhausting hours, had no weekly rest, and had most of their salaries withheld.

Overseas Goals

BYD did not comment on the allegations but has previously stated that it has “zero tolerance for violations of human rights and labor laws.”

The factory was due to be operational by March this year and would have marked its first EV plant outside of Asia. It is expected to have an annual production capacity of 150,000 units.

BYD is seeking to dominate overseas markets, with a target to sell half of its vehicles outside the Chinese market by 2030.

This is in response to an increasingly competitive EV market both at home and abroad. Indeed, in the first four months of 2025, BYD’s export market share shot up to 38% from 23% compared to the same period last year.

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