BYD’s Hong Kong-Listed Stock Loses $20B Amid Price War Backlash
BYD’s aggressive price cuts have triggered a market rout, erasing over $20 billion from its Hong Kong-listed shares since May 23. The Chinese automaker’s strategy to stimulate demand backfired as investors grappled with margin concerns and sector-wide pessimism.
The EV giant slashed prices by 10%-30% across 22 models, intensifying competition in an already saturated market. "Pricing alone no longer guarantees sales growth in China’s mature EV landscape," notes Andy Wong of Solomons Group, highlighting the fragility of demand in a tightening macroeconomic environment.
Once seen as Tesla’s primary challenger, BYD now faces the paradox of expansion: sacrificing profitability for market share in a sector where consumer sentiment is turning glacial.
