BMW's Hydrogen Truck Trial Runs Alongside an Electric M3 Plan and a Cautious Analyst Chorus

BMW pilots a hydrogen combustion truck in Leipzig, unveils the electric iX3 M60, and posts 3.4% higher Q3 US sales as its stock sits near a 52-week low.

BMW has begun testing a hydrogen combustion truck at its Leipzig plant, a first for German car manufacturing, according to company statements made yesterday. The pilot fits a broader pattern at the Munich-based group: while it retools assembly lines for an all-electric future, it is also probing alternative drivetrains well beyond the showroom.

That same week, the company confirmed a milestone at its home plant, where the one-millionth BMW M vehicle rolled off the line in early October. Munich will also host production of the first fully electric BMW M3, and from 2027 the historic site is slated to build nothing but battery-powered cars.

A New Electric M Performance Model Joins the Lineup

On Thursday, BMW unveiled the iX3 M60 xDrive, a fully electric M Performance model. The reveal marks another step in the group's push to migrate high-output drivetrains into its pure-electric range, a shift that now runs parallel to the hydrogen logistics experiment in Leipzig.

US Deliveries Climb Even as the Stock Lingers Near Its Low

North American operations are providing a bright spot. BMW of North America reported third-quarter 2026 US sales of 100,210 vehicles, up 3.4 percent from the same period a year earlier. Over the first nine months, deliveries reached 287,154 units, a gain of 4.3 percent.

The equity, however, has yet to reflect that momentum. In the latest session, the shares slipped 1.1 percent to close at EUR 53.72, leaving them roughly 2.3 percent above their 52-week low of EUR 52.50.

Buyback Support and a Leaner Cost Base

Management is leaning on its ongoing 2025/2027 share repurchase program to underpin the price. A mandatory disclosure showed the company bought back 971,615 own common shares between September 28 and October 4.

Those purchases sit alongside a wider efficiency drive laid out at the group's capital markets day. BMW plans a slimmer product portfolio, deeper use of artificial intelligence, and a 20 percent reduction in management structures, with the affected divisions and their leadership roles trimmed by mid-2027.

Margin Targets That Disappointed the Street

Profitability ambitions for the automotive unit are modest in the near term. The board is targeting an operating EBIT margin of just 3 to 5 percent by 2028, with a return to the 8 to 10 percent range envisioned only in the early 2030s.

That roadmap landed poorly with analysts. On Monday, Jefferies cut its price target to EUR 60 from EUR 70 while keeping a "Hold" rating. Analyst Philippe Houchois pointed to a management presentation seen as lacking conviction, no guidance on future capital returns, and the fallout from an earlier profit warning. The firm also lowered its revenue and earnings forecasts for 2027.

Deutsche Bank Research took a more constructive line, reducing its target to EUR 71 from EUR 78 on October 1 but sticking with a "Buy" rating.

Investors will get a clearer read on the current fiscal year in a matter of weeks: BMW has scheduled its quarterly statement for the period ending September 30 for November 4.