BYD's Washington Opening and European Factory Plans Collide With a Bruised Share Price

BYD shares gained 3.7% to EUR 9.07 on a report it may join Xi Jinping's US delegation, as it plans four European sites and lifts export targets.

BYD shares climbed 3.7% to EUR 9.07 on Tuesday, lifted by a Bloomberg report that Chinese government officials are weighing whether to include the automaker in a business delegation accompanying President Xi Jinping to Washington next week. Senior officials around Xi's cabinet chief Cai Qi are reviewing a list of Chinese corporate heavyweights for the state visit, scheduled for 24 September.

For investors, a BYD seat at the table would be more than ceremonial. The company sits at the heart of US-China tensions over electric vehicles and their supply chains, and any diplomatic thaw between Washington and Beijing would ease pressure on export-driven manufacturers like BYD.

Europe: three assembly plants and a battery factory

The summit news lands as BYD sharpens its international blueprint. Alfredo Altavilla, a former Fiat Chrysler executive now advising BYD in Europe, confirmed at an event in Turin that the group ultimately plans four sites on the continent — three vehicle assembly plants plus a battery factory. That ambition is already narrowing to specific geography: Reuters reports BYD is weighing Spain and France for its next European plant, with Italy now positioned as a "Plan B."

The push is partly defensive. Brussels is expected to introduce rules on local value-added content, and BYD's Europe special adviser said the company needs three vehicle assembly plants and a battery factory in Europe to meet those requirements while sustaining its growth strategy. The company also intends to build heavy trucks locally, with its first European heavy truck slated for a 2027 launch — a move that extends its footprint well beyond passenger cars.

Export targets revised sharply upward

BYD is backing the expansion with increasingly bullish volume forecasts. According to two brokerages citing a meeting with management, the company expects overseas vehicle deliveries to exceed 2.5 million units in 2027. Bloomberg reported separately that BYD raised its 2026 overseas sales target from 1.5 million to between 1.9 million and 2 million vehicles.

August numbers lend weight to the optimism. BYD sold 440,293 new-energy vehicles during the month, up from 373,626 a year earlier — an 18% gain — with exports setting a record and overseas sales jumping 134%, according to company figures. Reuters framed the performance as growing exports offsetting softer domestic demand.

That international growth may soon face tighter oversight. Chinese regulators issued guidelines in September covering automakers' overseas operations, spanning foreign investment, antitrust, anti-corruption and social responsibility. The rules apply directly to BYD's international activities and could temper its expansion pace in certain markets.

Profit pressure and a labor dispute at home

Not every recent headline has been favorable. Online posts suggested an annual employee profit-sharing payout had been scrapped, drawing loud criticism on social media; the company has not commented. The unrest comes after first-half profit already fell by roughly a fifth, a sign that the fierce price war in China's core market continues to weigh on margins.

Shareholders will get their say at an extraordinary general meeting on 29 September, where charter amendments, the election or re-election of directors, and the launch of an asset-pool business with external guarantees are up for a vote.

Chart still searching for a floor

The stock remains far from its highs despite Tuesday's bounce. At EUR 9.05–9.07, BYD trades roughly 27–28% below its 52-week peak of EUR 12.49, set on 2 October. The shares are down 15% year-to-date and 27% over twelve months. Technically, the picture is strained: an RSI of 41.9 and a price 6.9% below the 50-day moving average suggest no durable turnaround yet, even if the latest advance offers a first positive signal.

The gap between operational expansion and the share price is likely to keep investors occupied. While BYD broadens its industrial base in Europe and lifts its export ambitions, regulatory uncertainty in China and broadly subdued sentiment toward Chinese auto stocks continue to weigh on the equity.