BYD’s Song Ultra EV Orders Surge Past 61,000, but a Battery Bottleneck Caps Deliveries

BYD's flash-charge Song Ultra EV: 61K orders, 12K delivered. Domestic profit down 55%, exports up 71%; company eyes European factory buys.

BYD is caught between voracious demand for its latest flash-charge technology and a production line that cannot keep up. The Song Ultra EV, the flagship model for the company’s second-generation Blade Battery, racked up 61,240 orders in its first month on the market, but only 12,000 units were delivered in April 2026. The bottleneck stems from the very battery that makes the car special: five minutes is all it takes to charge from 10% to 70%, a feature that has clearly resonated with buyers. BYD chairman Wang Chuanfu confirmed on May 16 that the new Blade battery is in short supply, and the company is racing to add capacity. A new 16 GWh plant in Xi’an has entered trial production, while the first-generation Blade battery continues to run in parallel so existing models are not squeezed further.

That manufacturing headache arrives at a time when BYD’s bottom line is already under severe pressure. First-quarter net profit slumped 55% to 4.09 billion yuan, dragged down by a brutal price war in its home market, expiring government subsidies and rising supply-chain costs. Revenue also contracted, and domestic passenger-car sales fell for the eighth consecutive month in April. In the first four months of 2026, BYD’s China sales dropped 48% compared to the same period last year, a stark reflection of the cooling home-market dynamics.

The story outside China could hardly be more different. Exports soared 70.9% in April to 134,500 vehicles, pushing the overseas share of total monthly sales to nearly 43%. In Brazil, BYD overtook Volkswagen for the first time in April, claiming the top spot in new registrations – a historic milestone for any Chinese automaker in Latin America. European registrations surged 155% in the first quarter, and Germany alone delivered a record 4,700 vehicles in April.

With tariffs on Chinese-built EVs looming in Europe, BYD is accelerating local production plans. Vice-chairwoman Stella Li revealed that the company is in talks with Stellantis and other European manufacturers about acquiring idled factories, particularly in Italy. Plants such as Mirafiori and Cassino, where output tumbled 37.4% in the first quarter, are under review. Li also flagged Maserati as “very interesting,” hinting at possible interest in the premium brand. However, BYD will not accept a joint venture structure in Europe; it insists on full control over its regional operations. The premium Denza brand launched on the continent just a day earlier, starting with the 1,140-horsepower Z9GT and the D9 van. BYD aims to be present in 30 European markets with 150 dealers by the end of 2026.

To help offset the margin squeeze at home, the company has raised prices for optional smart-driving upgrades by more than 20%. That pricing move is paired with a product offensive: the third-generation Yuan PLUS – marketed internationally as the Atto 3 – is due to launch on May 21. It will feature an 800-volt architecture, the new Blade battery and a 630-kilometer range. The model will be a key test of whether BYD can align its technological ambition with the production capacity needed to satisfy both domestic and export demand.

Despite the operational disconnect, analysts remain broadly optimistic. The average price target from 25 experts stands at 124 Hong Kong dollars, well above the H-share’s current level near 98 Hong Kong dollars. Citigroup maintains a buy rating, citing the structural growth of EVs. The next support level on the chart sits at 97 Hong Kong dollars. For the stock to regain momentum, the export machine will need to churn out volumes large enough to compensate for the shrinking profits in China.

The valuation gap with Tesla endures: BYD’s market capitalisation is around $121 billion, versus Tesla’s roughly $1.5 trillion. Analysts point to the premium Tesla commands from artificial intelligence and robotics ambitions, even though BYD delivered 2.26 million EVs in 2025 compared to Tesla’s 1.64 million. For now, BYD’s investment case hinges on whether it can resolve its production bottlenecks, sustain its export surge and navigate the domestic price war – all at the same time.