--- title: "BYD and Xiaomi Shares Rise on Strong June EV Deliveries" description: "Shares of Chinese carmakers BYD and Xiaomi rose on July 2 after strong June and second-quarter delivery figures — BYD reclaimed the global electric-vehicle sales crown from Tesla in the quarter. But the gains sit atop an industry still fighting a punishing price war that keeps margins thin." category: "Companies" category_url: https://boursel.com/category/companies author: "Priya Venkatesan" published: 2026-07-02T04:44:00.000Z updated: 2026-07-02T04:44:00.000Z canonical: https://boursel.com/article/byd-and-xiaomi-shares-rise-on-strong-june-ev-deliveries tags: ["byd", "xiaomi", "electric-vehicles", "china", "tesla"] --- # BYD and Xiaomi Shares Rise on Strong June EV Deliveries Shares of Chinese carmakers BYD and Xiaomi rose on July 2 after strong June and second-quarter delivery figures — BYD reclaimed the global electric-vehicle sales crown from Tesla in the quarter. But the gains sit atop an industry still fighting a punishing price war that keeps margins thin. China's electric-car makers gave investors something to cheer on Wednesday — even if the celebration was tempered by the hard math of a brutal price war. Hong Kong-listed shares of **BYD** rose about **9%** and **Xiaomi** about **5%** on July 2 after the two companies reported strong June delivery figures, [CNBC reported](https://www.cnbc.com/2026/07/02/china-ev-stocks-xiaomi-byd-june-deliveries-production.html). Investors read the numbers as a sign of resilience in a bruised market. ## The numbers BYD said it sold about **403,000 new-energy vehicles** in June, up modestly from a year earlier, with a **record** of roughly **175,000** of those going to customers **outside China** — nearly double its overseas total a year ago, per the company's monthly disclosure. Xiaomi, the smartphone maker that has moved into cars, again delivered **more than 30,000** vehicles in June, and roughly **180,000** in the first half — about a third of its full-year target. (New-energy vehicles, or **NEVs**, is China's official term for battery-electric and plug-in hybrid cars.) The standout was the quarter. BYD delivered around **557,000 fully electric vehicles** in the second quarter, [enough to retake the global battery-electric sales crown from Tesla](https://electrek.co/2026/07/01/byd-tesla-q2-2026-bev-sales/), which came in near 396,000. That reversed the prior quarter, when Tesla had narrowly led. BYD's surge was driven heavily by **exports** into Europe, Southeast Asia and Latin America. ## Volume without easy profit Here's the catch Boursel has flagged before: in China's EV market, **strong deliveries don't equal strong profits.** A years-long **price war** — competitors repeatedly cutting prices to win share — has crushed margins across the industry. BYD's **domestic** June sales actually fell sharply from a year earlier, after China halved a key EV purchase-tax break at the start of 2026, raising the effective price of many cars. That is a big reason BYD and its rivals are pushing so hard into **exports**: the home market has become a grind. The financial strain is real. BYD's annual profit fell in 2025 even as it sold more cars, and its chairman has described the industry as entering a "brutal" shakeout. Both BYD and Xiaomi have started **raising prices** on some models — a defensive move to protect margins rather than a sign of pricing power. And despite Wednesday's pop, both stocks remain **down sharply for the year** — BYD off roughly a fifth, Xiaomi more — as investors weigh thin margins (and, for Xiaomi, rising memory-chip costs squeezing its phone business too). ## Why it matters For the **global auto industry**, BYD overtaking Tesla on quarterly EV sales is a milestone: a Chinese maker, bottled up at home, is winning volume abroad and reshaping competition for legacy carmakers in Europe, the U.S. and Japan. For **investors**, the split between booming deliveries and battered share prices is the key tension — growth and profit have **decoupled** in China's EV sector, and the market is pricing the margin risk, not just the volume. And for the **broader EV story**, it underlines that the question is no longer whether China can build and sell electric cars at scale — it plainly can — but **who, if anyone, makes durable money doing it.** Boursel offers no view on any carmaker's stock; the takeaway is that a strong sales month landed against a still-unresolved profitability problem. ## Sources - [Shares of BYD and Xiaomi surge as June delivery figures fuel optimism](https://www.cnbc.com/2026/07/02/china-ev-stocks-xiaomi-byd-june-deliveries-production.html) - [BYD retakes the global EV crown from Tesla in Q2 2026](https://electrek.co/2026/07/01/byd-tesla-q2-2026-bev-sales/)