BYD Shares Plummet as Profit-Slip Hints at Further Downturn

• BYD shares fell after earnings missed forecasts and Chairman Wang Chuanfu warned of a 'brutal knockout stage' in China's EV sector.
• Fourth-quarter net income dropped 38% to 9.3 billion yuan and revenue fell 14% to 237.7 billion yuan, missing analyst projections.
• Despite outselling Tesla, BYD's Q4 profitability reduction was sharper than anticipated, marking its first annual profit decline in four years.
• The company faces declining domestic sales and increased competition, forcing significant investments to keep up with tech-centric vehicles.
• BYD is increasingly focusing on overseas markets where demand is high and profit margins are better, aiming to sell 1.3 million cars outside China in 2026.