The BYD stock price continued its freefall on Monday, moving to its lowest level in over nine months after the company published weak delivery data. It dropped to a low of H$98.5, down by 28% from its highest point in May this year.
This crash has brought its market to H$960 billion from the previous H$1.1 trillion.
What BYD stock fell after sales drop
BYD, which was recently a high-flying Chinese automaker, has now come under intense pressure as its sales dropped amid rising competition from local and international brands.
In a report on Monday, the company said that its October sales plunged by 12% from the same period last year. It sold over 441,706 vehicles during the month, which was its second consecutive month of sales plunge.
Most importantly, the company has now become the second-biggest automaker in terms of sales after SAIC,which sold over 453,900 vehicles during the month.
BYD is also facing strong competition from other companies like Xpeng, Nio, Leapmotor, and Xiaomi, which have all posted strong deliveries.
READ MORE: Very bad news for Li Auto, XPeng, and Nio stock prices
Therefore, analysts predict that the company’s fourth quarter sales will fall by between 5% and 10%, marking the worst-performing period in the past few years.
BYD share price also dropped after the company published weak financial results last week. Its numbers came short of analysts and its own estimates, pushing it to lower its future outlook.
The company’s net income came in at CNY 7.82 billion, which is equivalent to $1.1 billion. Its revenue in the third quarter dropped by 3% to CNY 194.58 billion, which was much lower than the average estimate by analysts of CNY 216 billion.
The weak financial results came after the company slashed its 2025 sales estimate by 16% to 4.6 million units. As such, the October sales decline, it means that it needs a surge in November and December to hit its target.
The biggest challenge that BYD is facing is the rising competition, which has driven down vehicle prices in China. Its recent results showed that the price cuts have driven its gross margins lower, moving to 17.6% from the previous 21.9%.
Can BYD bounce back?
On the positive side, the company has made some major efforts to boost its sales and margins. One of them is that it is increasing its presence abroad, despite in Europe, where it is now outselling dominant brands like Tesla. Winning the international market could help to offset the rising competition in China.
The company is also reducing its inventory rapidly as it gears towards the launch of 2026 models. In a recent note, an analyst said:
“A ‘de-stocked’ BYD could be loved by the market again with its relatively defensive margin trends and cost advantage natures than peers.”
BYD share price technical analysis
The daily timeframe chart shows that the BYD stock price has crashed in the past few months, moving from a high of H$ 137 in May to the current H$98.
It has plunged below the important support level at H$102, its lowest level in August and September. This price is the lower side of the descending triangle pattern.
The stock has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are in control.
Meanwhile, the Relative Strength Index (RSI) and the Stochastic Oscillator have moved below the oversold level.
Therefore, the most likely scenario is where it continues falling as sellers target the key support at $90. A move above the resistance at $102.38, will invalidate the bearish outlook.
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