BMW's US Sales Jump 13% but Index Removal and Share Overhaul Keep the Stock Stuck Near Lows

BMW's shares languish near lows as index removals and preferred share conversion offset a 13% Q2 sales surge in North America. Analysts see a buying opportunity.

BMW's North American unit delivered a robust performance in the second quarter, selling just over 102,700 vehicles — a 13% surge from a year earlier. Yet the Munich-based carmaker's shares remain anchored near their 52-week trough, weighed down by a double dose of structural bad news: exclusion from two major stock indices and a sweeping conversion of its preferred shares.

The stock closed at €60.40 on Friday, down 0.43% on the day, extending its year-to-date slide to roughly a third of its value. That decline has since sharpened to nearly 37%, with the equity now hovering barely above the lows it touched in recent weeks.

Index Ousters Reduce Visibility

Since the start of July, BMW has been removed from both the S&P Europe 350 and the FTSE All-World indices. The delisting strips the stock of a key audience: institutional investors who passively track these benchmarks. The move reduces BMW's profile in the global fund universe at a time when the company can least afford to lose attention.

The pain is compounded by a separate corporate restructuring. BMW is converting its preferred shares into ordinary common stock on a one-for-one basis, a process that runs until July 3, 2026. The technical switch is automatic for shareholders, but it expands the free float of common shares by about 19% and equalizes voting rights across all equity. Going forward, each share carries the same vote at general meetings, and dividend distributions will be uniform. The new shares will receive the full dividend retroactively from January.

US Sales Provide the Bright Spot

Amid the gloom, North America has emerged as a crucial growth engine. Sales of BMW's X-series SUVs — the rugged light-truck models — now account for more than half of the brand's US deliveries. The shift toward plug-in hybrids was particularly sharp, with registrations climbing nearly 23%. Pure battery-electric vehicles, however, slumped more than 18%, as buyers hold off for upcoming model refreshes such as the new i7.

BMW aims to reignite EV momentum with the launch of the iX3. Originally slated for a summer debut, the electric SUV will now reach US showrooms on September 25. Reservations are open at around $61,500, and the vehicle boasts an EPA-rated range of 434 miles. A further boost is expected by the end of 2026, when production of the fully electric iX5 begins at BMW's Spartanburg plant.

The broader US picture is encouraging: BMW brand sales rose 4.7% in the first half of the year. MINI, however, posted a 6.0% decline.

Analysts See a Buying Opportunity

Despite the stock's slide, some market watchers argue the sell-off has gone too far. Bernstein Research maintains an "outperform" rating on BMW with a price target of €85, implying more than 40% upside from current levels. Analyst Stephen Reitman sees the risk-reward as attractive, particularly if the US momentum continues to offset headwinds elsewhere.

China remains the biggest question mark. Weak demand in the world's largest auto market, combined with lowered margin targets, has kept pressure on BMW's earnings outlook. The company's next major data points come later this month: an analyst call on July 10 will offer early signals on trading, followed by the full first-half results on July 30. Those reports will show whether the US can carry enough weight to arrest the stock's decline — or whether the index ousters and share conversion have already set the tone for the rest of the year.