BYD slashes EV prices despite Beijing’s warning to avoid price war

BYD, the largest Chinese car manufacturer, plans to expand in Europe with three vehicle assembly plants and one battery plant. The company's advisor, Alfredo Altavilla, revealed these plans to Reuters, aiming to comply with European regulations and meet volume targets. BYD has already started trial production in Hungary and is in talks with governments in Spain, France, and Italy for additional sites. The company is focusing on overseas markets as sales in China decline, with overseas deliveries

BYD is recalling 183,211 vehicles in China, including Tang SUVs and Qin sedans, due to faulty brake pedal stoppers that may cause brake lights to stay on. The recall, initiated by BYD, covers vehicles produced between 2014 and 2022. This is BYD's third major recall in a year, amid declining sales and financial pressure from China's EV price war. BYD's first-half net profit fell 20.5% to 12.33 billion yuan.

BYD reported record August sales of 440,293 new-energy vehicles, up 18% YoY, driven by a 134% surge in overseas sales. Domestic sales fell 14%. Battery-electric vehicles accounted for 59% of passenger sales. BYD aims to sell 2.5M vehicles overseas in 2027, up from 1.9M-2M targeted for 2026. Investors reacted cautiously to mixed domestic and export trends.

Boyd Gaming Corp's stock hit a 52-week low of $74.74, down 10.01% over the past year. Despite a P/E ratio of 3.23 and being listed as undervalued, the company faces market pressures. Q2 earnings beat estimates with adjusted EPS of $1.93, but revenue of $1.03B missed forecasts. Mizuho raised its price target to $104, while Stifel set a $92 target with a Hold rating.

BYD plans to build four factories in Europe, including three vehicle assembly plants and one battery factory, to boost EV production and comply with local regulations. The company aims to meet rising demand and adhere to EU rules, with discussions ongoing in France, Spain, and Italy. BYD's stock is trading at $75.60, undervalued by 17.4% according to its GF Value™ of $91.55, with a GF Score™ of 89/100. Insider activity shows significant selling.

BYD unveiled its ETT 44 electric semi-truck in Europe, boasting up to 373 miles of range and 1.5 MW charging power, outpacing Tesla's Semi in these areas. BYD plans to launch the truck in Europe next year and eventually manufacture locally. The ETT 44 supports a 44-tonne gross weight and offers a 10-year battery warranty.