BYD Stock Price Hits 10% Lower Circuit at ¥321.76 on April 7 Amid EV Sector Pressure
Key Highlights:
BYD Co. Ltd. (SHE: 002594), China’s leading electric vehicle (EV) manufacturer, witnessed a steep decline of 10% on April 7, closing at ¥321.76, triggering the day’s lower circuit limit.
The stock opened at ¥333.34 and never recovered after the early-morning slide, bottoming out at the session low. The drop came in response to renewed pressure on Chinese EV valuations, sector rotation, and potential regulatory headwinds.
BYD April 7 Trading Summary
| Metric | Value |
|---|---|
| Previous Close | ¥357.51 |
| Open | ¥333.34 |
| High | ¥337.70 |
| Low | ¥321.76 |
| Close | ¥321.76 |
| Change | -¥35.75 |
| Change % | -10.00% |
| Market Cap | ¥1.08L Cr |
| P/E Ratio | 23.25 |
| 52-Week High | ¥403.40 |
| 52-Week Low | ¥203.99 |
Why Did BYD Stock Crash Today?
1. EV Sector Sell-Off in China
- Broader EV stocks in China faced selling pressure due to concerns over slowing domestic demand, price wars, and rising battery costs.
2. Warren Buffett’s Berkshire Hathaway Selling
- While there was no confirmed sale today, speculation continues around Berkshire Hathaway trimming its stake in BYD, contributing to investor anxiety.
3. Technical Breakdown
- The stock hit its daily lower circuit limit of 10% early in the day and stayed near that level, indicating strong bearish sentiment.
4. Geopolitical & Export Concerns
- With the EU probing subsidies to Chinese EV makers and increasing trade scrutiny, BYD’s export ambitions are under pressure.
Expert Commentary
“The EV price war is hurting even the most dominant players. BYD’s margins are at risk despite volume leadership,”
— Tu Le, Sino Auto Insights
“Investors are nervous over valuation. BYD’s P/E ratio at over 23 for a maturing auto stock looks stretched,”
— Catherine Yeung, Fidelity China Fund
Peer Snapshot – China EV Stocks on April 7
| Company | % Change |
|---|---|
| BYD (002594) | -10.00% |
| Nio (9866.HK) | -6.20% |
| XPeng (9868.HK) | -5.10% |
| Li Auto | -4.50% |
BYD was the worst performer among the major EV names today, indicating it bore the brunt of market pessimism.
Technical Outlook
- Support Level Broken: ¥330
- Next Support: ¥310
- Resistance Now: ¥335–340
If sentiment remains weak on April 8, BYD could test further downside toward the ¥300 psychological mark.
Long-Term Concerns for BYD Investors
- Profit Margin Compression due to discount-led sales race.
- Export Headwinds due to EU and US protectionism.
- Valuation Debate as investors question P/E premiums for auto stocks.
However, BYD remains the largest EV player by volume globally, offering long-term scalability and strong domestic dominance in China.
BYD Stock Price Faces Heavy Correction Amid EV Turbulence
The BYD stock price crashing by 10% on April 7 signals deep investor concern surrounding EV valuations, export headwinds, and sector-wide pessimism in China. With no major news from the company itself, the drop reflects a broader shift in sentiment and risk aversion.
The coming days will be crucial to assess whether this was a panic-led selloff or a trend-defining correction.
FAQs
Q1: Why did BYD stock drop 10% today?
A: Broader EV sector weakness, valuation fears, and geopolitical concerns.
Q2: Did BYD hit its lower circuit?
A: Yes, BYD hit the 10% lower circuit at ¥321.76 and stayed there.
Q3: Is Berkshire Hathaway still holding BYD?
A: There’s been no fresh confirmation, but rumors persist about stake reduction.
Q4: Will BYD recover this week?
A: Depends on broader market support and any official updates from the company.
Q5: What is BYD’s 52-week low?
A: ¥203.99 — today’s close is still significantly above that.
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