BYD Shares Face Test as China’s EV Price War Heats Up
- Volatility skew had jumped to the highest since October 2022
- China electric vehicle discounts are taking a toll on results
A BYD Seal 06 DM-i electric vehicle.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
After getting a jump on competitors in the latest round of China’s electric-vehicle price war, BYD Co. now faces a key test of proving that it can withstand the impact on profits.
China’s biggest EV maker broke with its usual practice of not providing guidance ahead of its earnings report that was released Monday and showed revenue that was weaker than most analysts had anticipated. Even before the latest results, the stock’s volatility skew this month jumped to the highest since October 2022, indicating increased investor demand for downside protection.