Major Setback for BYD: $45 Billion Wiped Off Market Value

According to Bloomberg, BYD shares have lost about 30% since May, erasing $45 billion in market value. The decline stems from price wars in the Chinese market and Beijing’s moves to limit excessive domestic competition.

The company’s second-quarter profit fell by 30%, and its 2025 delivery target was reduced from 5.5 million to 4.6 million vehicles. Product updates have also been delayed until the first quarter of 2026. Still, overseas sales — projected at 0.9–1.0 million units — and upcoming technology upgrades remain crucial for a potential revaluation.

Warren Buffet’s long-term investment strategy in BYD has also drawn attention. Holding 10% of the company’s shares in August 2022, Buffet reduced his stake to below 5% by July 2024. Since first investing in BYD in 2008, it is estimated that he secured nearly $10 billion in profits through share sales.

It is not only BYD struggling in this environment. Tesla is also facing profit declines. Although the EV market continues to grow, competition creates challenges across the board. Traditional automakers are surviving through hybrid models, while new players are still vying for leadership.