BYD Q3 reported profit declined 33% Share fell as much as 6.4% Revenue missed estimate...
$BYD COMPANY (01211.HK)$ $BYD Company ADR (BYDDY.US)$ $Tesla (TSLA.US)$
The Edge:
BYD shares tumbled on Friday after BYD reported a decline in third- quarter net income and revenue, missing analyst expectations and underscoring even the electric car giant isn't immune to the brutal competition in the world's largest automotive market.
The company's Hong Kong-listed shares fell as much as 6.4% in early trading on Friday, following earnings late on Thursday in which quarterly net income fell 33% from a year earlier to 7.82 billion yuan (US$1.10 billion). Total revenue in the three months ended Sept 30 dropped about 3% to 194.98 billion yuan, missing analyst estimates for 216 billion yuan.
BYD delivered 1.15 million new-energy vehicles, including pure-electric models and plug-in hybrids, in the third quarter, down 1.8% from a year earlier.
BYD had previously slashed its 2025 sales goal by 16% to 4.6 million units, according to media reports. It didn't release an official figure in Thursday's results.
The carmaker's gross margin contracted during the three months to 17.6% from 21.9% a year ago, although increased from 16.3% in the second quarter. That indicates the pressure BYD faces from the prolonged period of discounting that has underpinned its rapid ascent in the Chinese EV market but drawn scrutiny from Beijing.
Source:
BYD shares fall as profit slump piles pressure on Chinese EV giant
The Edge:
BYD shares tumbled on Friday after BYD reported a decline in third- quarter net income and revenue, missing analyst expectations and underscoring even the electric car giant isn't immune to the brutal competition in the world's largest automotive market.
The company's Hong Kong-listed shares fell as much as 6.4% in early trading on Friday, following earnings late on Thursday in which quarterly net income fell 33% from a year earlier to 7.82 billion yuan (US$1.10 billion). Total revenue in the three months ended Sept 30 dropped about 3% to 194.98 billion yuan, missing analyst estimates for 216 billion yuan.
BYD delivered 1.15 million new-energy vehicles, including pure-electric models and plug-in hybrids, in the third quarter, down 1.8% from a year earlier.
BYD had previously slashed its 2025 sales goal by 16% to 4.6 million units, according to media reports. It didn't release an official figure in Thursday's results.
The carmaker's gross margin contracted during the three months to 17.6% from 21.9% a year ago, although increased from 16.3% in the second quarter. That indicates the pressure BYD faces from the prolonged period of discounting that has underpinned its rapid ascent in the Chinese EV market but drawn scrutiny from Beijing.
Source:
BYD shares fall as profit slump piles pressure on Chinese EV giant
Investing.com:
BYD's Hong Kong shares fell more than 4% to HK$97.50, their weakest level since early-February - nine months low. BYD shares fell on Friday after the Chinese electric vehicle maker logged a nearly 33% drop in its third-quarter profit, as it grapples with bitter competition in the world's biggest EV market.
Source:
BYD shares fall to near 9-mth low as bitter competition drags on Q3 earnings
BYD's Hong Kong shares fell more than 4% to HK$97.50, their weakest level since early-February - nine months low. BYD shares fell on Friday after the Chinese electric vehicle maker logged a nearly 33% drop in its third-quarter profit, as it grapples with bitter competition in the world's biggest EV market.
Source:
BYD shares fall to near 9-mth low as bitter competition drags on Q3 earnings
My View:
1. BYD continues to be in trouble financially as various media reported Q3 earnings. Here are some of my previous posts on why BYD is in trouble:
>BYD's Stock Falls After Report Buffett Sold His Entire Stake
>BYD Group quarterly sales decline for the first time since 2020 as its main competitor rises 96%
>BYD in trouble amid Mexico's new tariff on Chinese cars & auto parts
>BYD: Will it become the next Evergrande?
2. AJ from x media reported that BYD has lost a total of $10.3 billion year-to-date, according to filings released today. See chart. The company reported a negative cash flow of $3.5 billion in Q3, bringing its total 2025 cash burn over the first nine months to $10.3 billion.
1. BYD continues to be in trouble financially as various media reported Q3 earnings. Here are some of my previous posts on why BYD is in trouble:
>BYD's Stock Falls After Report Buffett Sold His Entire Stake
>BYD Group quarterly sales decline for the first time since 2020 as its main competitor rises 96%
>BYD in trouble amid Mexico's new tariff on Chinese cars & auto parts
>BYD: Will it become the next Evergrande?
2. AJ from x media reported that BYD has lost a total of $10.3 billion year-to-date, according to filings released today. See chart. The company reported a negative cash flow of $3.5 billion in Q3, bringing its total 2025 cash burn over the first nine months to $10.3 billion.
Excluding supplier financing, my research shows that BYD has never generated excess capital on a cumulative basis — in other words, the company remains lifetime cash flow negative.
Source: x.com/alojoh/st...
3. BYD stock target price set by some analysts is ridiculously high - highest 458.8 to lowest 80.0. According to Moomoo, the latest update of BYD's stock rating was on 9 Sep which is inaccurate (before Warren Buffett exited all BYD stock on 21 Sep). It goes to show the bias in reporting by some media (in particularly leftist media) for political reason that is report the positive aspects for BYD as compared to mainly reporting the negative for Tesla.
4. The purpose of this post is to give you a balanced view between the 2 giant EV companies - BYD and Tesla. Hence you need to get information from different sources like X media and YouTube.
You can watch Dayu's YT video which reported the recent BYD Q3 financial report.
Link to YT:
比亞迪(BYD)要完蛋了？銷量翻倍股價卻暴跌！YouTube
Summarized and translated:
BYD's sales are twice that of Tesla, but its stock price plummeted 4% after its Q3 financial report was released! Its free cash flow was a staggering negative $3.5 billion! Let's delve into the cash flow black hole and accounts payable days crisis behind the "sales champion"! Why is BYD burning through cash with 1.1 million units sold, while Tesla is making a fortune with 500,000 units? Looking at sales figures alone is not a smart approach! The Model Y sells for three times more than BYD in Beijing, yet it's the best-selling model? A stark comparison will instantly reveal the strategic differences!
3. BYD stock target price set by some analysts is ridiculously high - highest 458.8 to lowest 80.0. According to Moomoo, the latest update of BYD's stock rating was on 9 Sep which is inaccurate (before Warren Buffett exited all BYD stock on 21 Sep). It goes to show the bias in reporting by some media (in particularly leftist media) for political reason that is report the positive aspects for BYD as compared to mainly reporting the negative for Tesla.
4. The purpose of this post is to give you a balanced view between the 2 giant EV companies - BYD and Tesla. Hence you need to get information from different sources like X media and YouTube.
You can watch Dayu's YT video which reported the recent BYD Q3 financial report.
Link to YT:
比亞迪(BYD)要完蛋了？銷量翻倍股價卻暴跌！YouTube
Summarized and translated:
BYD's sales are twice that of Tesla, but its stock price plummeted 4% after its Q3 financial report was released! Its free cash flow was a staggering negative $3.5 billion! Let's delve into the cash flow black hole and accounts payable days crisis behind the "sales champion"! Why is BYD burning through cash with 1.1 million units sold, while Tesla is making a fortune with 500,000 units? Looking at sales figures alone is not a smart approach! The Model Y sells for three times more than BYD in Beijing, yet it's the best-selling model? A stark comparison will instantly reveal the strategic differences!
Other source:
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
ZnWC
Moo Contributor
I reflect trading experience by writing journals. My posts and comments are for education purpose not financial advice.
4511
Followers
87
Following
15K
Visitors
Follow
Market Insights
Hot Topics
Trump's 'Taco deal' sparks market rebound : Market rebound sustainable ?
1. If tariffs pause, which sectors benefit first? 2. Trump's "threat-compromise" cycle normalizes—how to hedge across assets?
Moo Options Explorer
Apr 7 17:28
Weekly roundup: Tariff turmoil and recession fears dominate
8888-8888 : if its in trouble then why does America have to out tariffs and other hurdles foe the car to compete in the American market? It’s more understandable that the Americans cant compete with this brand hence the extreme measures they’re taking and just like every sanction they’ve imposed before, it’ll also fail
ZnWC OP 8888-8888 : We have an abundance of evidence that BYD is in trouble financially before and after the Trump tariff is imposed (as given in my sources of information). BYD Q3 earnings is just one. Your naive opinion has none.
Sanctions failed? You must be blinded by the leftist media. China 'involution' (or neijuan) and worsen deflation are 2 red flags caused by tariffs imposed by several countries directly or indirectly.
Source:
Whats 'involution' and why is it worrying China's policymakers?
Commentary: What can really cure deflation in China?