Tesla Rival BYD Stock Plunges After Slashing Sales Targets - Here’s Why It Matters

Another EV giant hits the brakes—hard.

BYD just axed its sales projections, sending shares into a nosedive. The Chinese automaker, long seen as Tesla's most serious competitor, is facing headwinds that even its sleek electric models can't outrun.

Supply chain bottlenecks? Cooling demand? Market saturation? Pick your poison—the numbers don't lie. When a company this size revises targets downward, the entire sector feels the tremor.

Wall Street analysts are already sharpening their knives. One whispered: 'Turns out selling cars is harder than selling dreams.' Meanwhile, Tesla bulls are quietly smiling—nothing like a rival's stumble to make your own roadmap look pristine.

This isn't just about BYD. It's a reality check for the entire EV euphoria train. Innovation is sexy, but execution pays the bills. And sometimes, the market has a funny way of separating the drivers from the passengers.

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Following the news, BYD’s Hong Kong-listed shares fell about 2%, though analysts said the weaker goal was already expected.

BYD Trims Outlook after Weak Profit

The cut comes after BYD reported a 30% drop in profit for the last quarter. Deliveries in July and August were flat compared with last year, even as rivals gained ground with lower-priced mass-market models.

Beijing’s MOVE to limit heavy discounts has also hurt BYD, taking away a tactic it often used to defend market share.

Bernstein Calls It a “Clearing Event”

Bernstein analyst Eunice Lee described the lower sales goal as a “near-term clearing event” for the stock. She said the new goal is close to what investors expected and may be easier for BYD to achieve.

Even so, the company faces a tough road ahead. The peak sales season in September and October will test BYD’s ability to compete without relying on DEEP discounts. BYD is still China’s top EV brand, but rivals like Geely Automobile (GELYF) and XPeng (XPEV) are rolling out low-cost, better models, while Xiaomi (XIACF) has joined the market with its SU7 sedan and YU7 SUV, adding more pressure.

Is BYDDY a Good Stock to Buy? 

Turning to Wall Street, analysts have a Moderate Buy consensus rating on BYD stock based on 5 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average BYDDF price target of $17.56 per share implies 26.51% upside potential.