BYD's Washington Reprieve Meets a Sydney Software Snag

BYD shares fell 2.4% to EUR 8.39 as the US Senate postponed a connected-vehicle ban bill, while September NEV sales hit a 2026 monthly high.

A legislative pause in Washington has handed BYD a temporary reprieve from the threat of a permanent US ban on connected vehicles and their China-linked hardware and software. The US Senate postponed deliberations on the bill on Wednesday, easing — at least for now — the pressure on Chinese automakers eyeing American market access.

That breathing room, however, did little to lift the stock. BYD shares finished Friday's European session at EUR 8.39, down 2.4% on the day, tracking a broader retreat among Hong Kong-listed electric-vehicle makers. The paper now sits 4.5% above its 52-week low, with the weekly loss reaching 4.7%.

A September Record That Cuts Both Ways

Thursday's operational update painted a picture of two markets moving in opposite directions. BYD shipped 463,561 new-energy vehicles in September, a 16.98% year-on-year increase and its highest single-month tally of the calendar year so far. Overseas deliveries of passenger cars and pickups powered that momentum, surging 153.9% to 179,877 units.

The nine-month picture is far less flattering. Cumulative sales between January and September reached 3,131,576 vehicles, a 3.9% decline from the same period a year earlier — a figure that underscores how stubbornly soft demand has become at home. Chinese manufacturers continue to grapple with a bruising price war and cautious consumers, and it is the export engine, according to Reuters, that is doing the heavy lifting in offsetting that weakness.

Expanding abroad carries its own complications. The more Chinese brands push into foreign markets, the more scrutiny they attract from regulators and trade policymakers — a dynamic now playing out on multiple fronts.

JPMorgan Trims Its Enthusiasm

Not everyone is convinced the export story can carry the stock. JPMorgan downgraded BYD from "Overweight" to "Neutral" on Tuesday, cutting its price target from HKD 124 to HKD 88. The analysts pointed to lackluster domestic demand, rising input costs and persistent political uncertainty, including the prospect of trade barriers against Chinese automakers abroad.

Hong Kong investors responded coolly to Thursday's release once trading resumed, with the local listing giving ground. Sector-wide sentiment was already fragile: reports of September demand falling short of expectations in what is traditionally a strong sales month on the Chinese home market weighed on EV producers, while rising long-term US Treasury yields and the absence of mainland investors during the ongoing holidays added to the drag.

A Software Flaw Down Under

Operational headaches have surfaced on the export front as well. BYD's Australian arm confirmed on Thursday a software vulnerability in its Shark 6 pickup. The flaw in the infotainment system allowed unauthorized access via the Android Debug Bridge and the installation of untrusted applications.

The company said it intends to close the gap, with a wireless update to follow once the necessary validation is complete.

For investors, the setup captures the tension running through the BYD story. Overseas expansion is opening fresh sales channels and delivering record monthly volumes, yet policy decisions in Washington and other economic blocs remain a significant wildcard for the business ahead.