<div id="readability-page-1"><p>BYD (BYDDF) shares fell 2.2% to $11.34 on Wednesday despite reporting explosive growth in Europe's largest auto market. The Chinese electric vehicle (EV) giant saw its German registrations skyrocket by more than 1,000% last month, further widening the gap between itself and its chief American rival, Tesla (TSLA).</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The latest figures from the Federal Motor Transport Authority show that BYD sold 2,629 new cars in Germany during January. This is a staggering jump from the 235 vehicles it sold during the same month last year. In contrast, Tesla struggled to keep pace, recording only 1,301 registrations, less than half of BYD's total.</p> <h2><strong>Why the Stock Fell Despite the Surge</strong></h2> <p>While the German growth is impressive, investors remained cautious due to a mix of domestic and global headwinds. BYD's overall global sales for January were weighed down by a 30% year-on-year drop in its home market of China, caused by a shift in tax policies and a decrease in trade-in subsidies. Additionally, the company recently lowered its 2026 global export target from 1.5 million units to 1.3 million, signaling that the road ahead may be bumpier than initially expected.</p> <h2><strong>Tesla Faces Mounting Pressure</strong></h2> <p>Tesla's difficulties are not limited to Germany. The company has seen a backlash against Chief Executive Officer Elon Musk's political activities across several European markets. In France, Tesla registrations hit a three-year low, and in Norway, traditionally a stronghold for the brand, sales plummeted 88% in January. </p> <p>Meanwhile, legacy European automakers like Volkswagen (VWAGY), Renault (RNSDF), and BMW (<strong>DE:BMW</strong>) are also putting up a fight by launching several new EV models to reclaim their home turf.</p> <h2><strong>It Comes Down to Profit vs Presence</strong></h2> <p>To put it simply, BYD is winning the battle of the pavement in Europe, but it's still fighting a battle of the balance sheet globally. Selling ten times more cars in Germany than you did a year ago is a massive achievement, but investors are looking at the bigger picture. Between the price wars in China and the scaling back of export targets, the market is playing it safe. BYD has proven it can sell cars; now it has to prove it can maintain high profit margins while doing so.</p> <h2><strong>Is BYD Stock a Good Buy?</strong></h2> <p>Turning to TipRanks, Wall Street has a Strong Buy consensus rating on BYD stock based on eight unanimous Buys. The average 12-month BYDDF stock price target of $17.64 indicates about 55% upside potential from current levels.</p></div>

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<p>BYD's stock fell 2.2% to $11.34 despite a 1,000% increase in German registrations, selling 2,629 cars in January compared to Tesla's 1,301. Investors are cautious due to a 30% drop in sales in China and a reduced global export target. While BYD excels in Europe, it faces challenges in maintaining profit margins globally. Wall Street rates BYD stock as a Strong Buy with a 12-month target of $17.64, suggesting a 55% upside potential.</p>

- BYD shares fell 2.2% to $11.34 despite reporting over 1,000% growth in German registrations, selling 2,629 cars in January compared to 235 last year.  
- Investors remain cautious due to a 30% drop in Chinese sales and a reduction in global export targets from 1.5 million to 1.3 million.  
- While BYD leads in the European market, challenges persist regarding profitability and competition from legacy automakers and Tesla, which faces declining sales in Europe.

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BYD Stock Dips Despite Its Explosive Sales Growth in Germany, More than Double Tesla's January Total