The stock prices of BYD (HK:1211) (BYDDY) (BYDDF), one of Tesla’s (TSLA) key rivals in the electric vehicle market, slumped on Monday at the market close in China and Hong Kong.
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The stock dipped 3.82% to $15.40 (CNY 109.70) and 5.24% to $13.90 (HKD 108.40) on the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, respectively. Similarly, at the end of trading hours in the U.S. on Friday, BYD saw its $BYDDY and $BYDDF shares shrink by over 6% to $13.65 and $13.69, respectively.
The fall came after BYD reported a disappointing Q2 2025 on Friday, with the net profit of the Chinese EV producer declining for the first time in over three years. BYD’s net profit in the quarter plunged by 30% to $895 million from the same period last year.
BYD Suffers in Face of Price War
The setback comes on the heels of an intense price war between EV producers, especially in China, even as price cuts by BYD to stimulate sales fail to improve its bottom line in the quarter. The company made $27 billion in revenue during the quarter, falling behind the $28.8 billion consensus forecast.
Furthermore, BYD recorded earnings of 11 cents per share, as opposed to analysts’ expectations of earnings of 16 cents per share. That’s about a 7% dip in EPS from the same period last year. More importantly, this represents a sharp turn from Q1 2025, when the Shenzhen-based company almost doubled its EPS from the prior quarter.
For next quarter’s results, expected in late October, analysts are now anticipating an EPS of 21 cents per share. This stands at roughly a 16% expected jump in earnings per share from the figure posted in Q3 2024.
Is BYDDY a Good Stock to Buy?
BYDDY has no consensus rating by Wall Street analysts on TipRanks. However, TipRanks’ AI Stock Analyst gives the stock an Outperform rating, with a BYDDY price target of $107. This is an explosive 638.88% upside potential from its current price.
