BYD’s Record-Breaking Quarter Fails to Revive a Flagging Share Price

Despite record EV production, overtaking Tesla in Q2 deliveries, and a new materials partnership with Covestro, BYD shares remain 30% lower year-on-year, closing at €9.30.

BYD is sprinting ahead on nearly every operational front — producing more electric vehicles than ever, outselling Tesla, and forging new technology partnerships — yet its stock remains stubbornly stuck in the doldrums. The Shenzhen-based automaker closed Monday at €9.30, a decline of 2.4% from Friday’s close, leaving the shares 30% lower than a year ago and 15% in the red for 2026 so far.

The contrast between corporate momentum and market sentiment was underscored by a new strategic alliance signed on Monday. BYD inked a memorandum of understanding with German materials specialist Covestro to jointly develop low-carbon, recyclable materials for electric vehicles, drive batteries and energy storage systems. Covestro will contribute expertise in polycarbonate and polyurethane technologies, targeting applications such as vehicle lighting, interior and exterior parts, and battery thermal management. The partnership aligns with Covestro’s “Sustainable Future” strategy, and its “CQ” material line will incorporate at least 25% alternative feedstocks. Both companies intend to embed materials science directly into the mobility and energy value chain.

The collaboration comes hard on the heels of a production milestone that underscores BYD’s breakneck scaling. On July 8, the company’s Xi’an plant rolled out its 17-millionth new-energy vehicle — a Seal 08 sedan — just 82 days after reaching 16 million vehicles. In the second quarter alone, BYD delivered 557,090 pure battery-electric cars worldwide, comfortably outpacing Tesla’s 480,126. Exports are also accelerating: overseas passenger-vehicle and pickup sales rose 68% in the first half to 789,367 units, and June shipments of 175,349 vehicles marked a 95% year-on-year surge. On July 28, BYD will launch the “Racco” micro-car in Japan with an expected starting price below three million yen, further widening its global footprint.

That global ambition is also visible in a torrent of new models. The Qin Max business sedan, officially unveiled Monday, will sit above the existing Qin L and is aimed at a younger demographic. It will be offered as both a pure EV and a plug-in hybrid, with the electric version generating up to 240 kW (322 hp) and the hybrid pairing a 1.5-litre naturally aspirated engine with a 175-kW electric motor. The Qin Max is expected to hit the market in the third quarter and may be the first vehicle to use second-generation Blade batteries capable of charging from 10% to 70% in just five minutes. Meanwhile, the Fang Cheng Bao Shark pickup has cleared approval with China’s Ministry of Industry and Information Technology, bringing a 5,457-mm length and a 1.5-litre turbo-hybrid system delivering 170 kW at the front and 150 kW at the rear. Updated filings also show a larger Seagull — now 4,205 mm long with an optional lidar system for urban navigation — and the Denza Z9S, a dual-motor model packing up to 370 kW.

None of this activity has stirred the share price. BYD closed at €9.30 on Monday, still 37% below its 52-week high of €14.80 from July 2025 and only about 16% above the year’s low of €8.03 reached on June 30. The stock trades below both its 50-day moving average of €9.72 and its 200-day average of €10.68, and the relative strength index of 50.4 signals a neutral market — neither oversold nor overbought. The market has yet to price in the operational gains, leaving a clear gap between the company’s record deliveries and its languishing valuation.

Whether the Qin Max or the forthcoming pricing announcements can close that gap remains to be seen. For now, BYD’s factory floors are running at full tilt, its dealer network is expanding overseas, and its technology road map is becoming ever more ambitious — but on the trading floor, the brakes are still firmly applied.