While the Chinese electric vehicle behemoth BYD continues to post record-breaking operational results and significant growth in Europe, its stock price tells a contradictory story. The equity has been trending downward, recently touching a fresh annual low. This divergence raises a critical question for investors: why is the market discounting such strong fundamental achievements?
Soaring Costs Overshadow Milestone Achievements
Analysts point to the substantial cost of BYD’s aggressive global expansion as a primary factor behind the hesitant market sentiment. The company’s relentless pace of innovation and scaling comes with a hefty price tag. In just the first three quarters of 2025, BYD invested 43.75 billion CNY (approximately 10.7 billion NZD) into research and development. This figure represents a year-on-year surge of 31 percent.
Market observers interpret the current share price weakness as a reflection of concerns over potential margin compression. The dual pressures of skyrocketing R&D expenditures and the competitive pricing required to gain ground in Western markets are weighing on the company’s valuation. Technically, the stock is at a critical juncture; maintaining support above the recent annual low is viewed as essential to stave off further selling, regardless of the production records being set.
European Growth Dramatically Outpaces Tesla
The scale of BYD’s international advance is starkly visible in the latest European registration data for November 2025. The figures reveal a significant shift in competitive dynamics:
* BYD registered 21,133 new vehicles, representing a massive 221.8 percent increase compared to the same period last year.
* In contrast, Tesla saw registrations decline by 11.8 percent to 22,801 units.
* On a year-to-date basis, BYD has delivered 159,869 vehicles in Europe, while Tesla’s volume has contracted by 28 percent.
Should investors sell immediately? Or is it worth buying BYD?
This export momentum is a global phenomenon. By mid-December, the company’s total sales for the year reached 4.182 million units, an increase of 11.3 percent. The export business is a key driver: with 917,000 vehicles sold outside of China, BYD has already surpassed its total export volume for the entire previous year.
New Annual Low Contrasts with Production Feat
The tension between business performance and market perception reached a new level this week. On Monday, BYD shares fell to a new 12-month low of 10.21 Euros. Subsequent days have seen only tentative stabilization, leaving the technical chart picture severely weakened.
This market movement appears to disregard a major corporate milestone. The company has officially confirmed the production of its 15-millionth “New Energy Vehicle” (NEV). The commemorative car, a Denza N8L luxury SUV, rolled off the assembly line in Jinan. Given that the 10-millionth vehicle milestone was passed only a few months prior, this achievement highlights the extraordinary speed of the company’s current manufacturing scale-up.
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