Mercedes-Benz Marks a Century of Luxury While Shares Teeter Near 52-Week Low on BYD Pressure

Mercedes shares tumble to €44.47, with RSI oversold and steep discount to 200-day MA. BYD's record exports and premium push deepen investor angst as Q2 earnings loom.

The festivities for Mercedes-Benz’s 100-year brand anniversary are in full swing, with the Stuttgart automaker polishing its three-pointed star as a global luxury emblem. On the trading floor, however, the mood is anything but celebratory. The stock closed at €44.47 on Wednesday, a daily loss of 1.85%, and now sits just a whisker above the 52-week trough of €43.99 set on June 18. Since the start of the year, the shares have shed nearly 28% of their value, making Mercedes one of the weakest performers in the Euro STOXX 50.

Technical indicators underscore the severity of the slide. The relative strength index has fallen to 31.6, firmly in oversold territory, while the stock trades almost 20% below its 200-day moving average of €55.13. That gap highlights just how deep the correction has been over the past months. The broader sector is no help – the Euro STOXX 50 dipped 0.26% on the same day, but automakers bore the brunt of selling pressure. Over the last 30 days, Mercedes shares have tumbled 12.34%, with annualized 30-day volatility rising to 27.40%, a clear signal of sustained uncertainty among investors.

Part of that uncertainty stems from a fresh competitive threat out of China. BYD, the country’s largest electric-vehicle maker, set a new overseas shipment record in May 2026 by exporting more than 160,000 battery-electric and plug-in hybrid vehicles. Its sub-brands Denza and Yangwang are targeting the premium segment – precisely the high-margin territory Mercedes relies on to fund its luxury ambitions. To make matters worse, BYD is expected to unveil new top-end models at the Goodwood Festival of Speed in July, directly challenging Mercedes on its home continent. This has added another layer of anxiety for shareholders already nervous about a weakening demand picture in Europe.

Mercedes’ management is betting big on a luxury repositioning to escape the mass-market grind. From 2026, the company plans to open so-called “Mercedes-Benz Studios” in 18 global metropolises, blending car sales with lifestyle experiences. A sprawling real-estate project in Dubai is also being expanded. The idea is to cement Mercedes as a holistic luxury brand rather than just an automaker. Yet for all the gleaming showroom concepts, hard margins remain elusive. European car registrations inched up in May, but the rapid shift toward battery-electric vehicles has unleashed a brutal price war – and Mercedes managed only a meager sales increase on the continent last month.

The board has promised the biggest model offensive in company history for 2026, but until those new vehicles start generating revenue and profit, the stock will remain under pressure. The next real test arrives on July 28, when Mercedes reports second-quarter earnings. Investors will be listening for evidence that the luxury pivot can deliver in a difficult market – and that the company can withstand the growing Asian assault on its premium stronghold. If the report disappoints, a quick test of the year’s low near €44 seems almost inevitable. Support around that level is the last line of defense before a new 52-week low becomes reality.