From Bloomberg, October 29:
BYD Co.’s Hong Kong-listed shares are heading for their longest streak of monthly declines since 2018 as investors grow increasingly skeptical about the company’s ability to fend off competition in China.
Ahead of earnings expected later Thursday, the stock has fallen 32% from a peak in May, wiping off more than $45 billion in market value. Traders have been questioning BYD’s momentum in its home country as vehicle sales from peers like Geely Automobile Holdings Ltd. and Zhejiang Leapmotor Technology Co. have surged.
BYD is struggling to keep its position as China’s leading maker of electric vehicles. It delivered only about 1.1 million cars in the three months through September, down 1.8% from the same period last year, according to data compiled by Bloomberg. Analysts estimate its quarterly results will show sales increased 7.4%, the slowest pace since early 2024.
“Results could be a mixed bag, as margin upside from narrowing promotions and lower dealer rebates should largely offset an unfavorable product mix,” Morgan Stanley analysts including Tim Hsiao wrote in a recent note....
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