AI, Bitcoin, and e-mobility in the eye of the storm! Opportunities at BYD, NEO Battery Materials, and Strategy

BYD – Despite good sales figures, the share price is falling

BYD ("Build Your Dreams") is on a growth trajectory in terms of operations, but the share price tells a different story. Although sales in Europe are off to a very good start, BYD shares have now lost almost 40% of their May high of around EUR 17.70. In Q3, the Company sold over 1.5 million vehicles, including more than 80,000 in Europe, which is three times as many as in the previous year. Market share increased significantly, particularly in Germany: 2.9% for electric vehicles and 6.9% for plug-in hybrids. Nevertheless, investors are reacting cautiously, pointing to the high expansion costs and potential margin risks associated with aggressive localization in Europe. BYD has rolled out the 17.4% tariff barriers with a 25% price reduction, which did not particularly please its main competitor, VW.

In recent days, the medium-term strategy for Europe has been announced: by the end of 2025, 1,000 sales outlets are to be active, and BYD is aiming to double this number by 2026. At the same time, production capacities are being created in Hungary, where BYD is set to open its first European plant in 2026. Turkey has also qualified to meet Chinese quality standards. In addition, a third location in Spain is being considered. According to management, this will naturally eliminate customs barriers and reduce high overseas transport costs. Perhaps brand awareness will also increase if thousands of jobs are created in the EU. Manager Maria Grazia Davino recently emphasized that proximity to European customers is crucial in order to compete with Volkswagen, Tesla, and increasingly Renault and Stellantis. Local presence in sales, service, and manufacturing is considered a key success factor. It remains to be seen whether this will bring the stock back into focus, but in any case, there are 28 "Buy" recommendations on the LSEG platform with an average upside potential of 43%. At a price of EUR 10.65, the 2026 P/E ratio is only 11. The stock is no longer expensive!

NEO Battery Materials – Silicon anodes redefine battery performance

Without good batteries, e-mobility makes little sense! That is why the market is very attentive when innovative suppliers appear on the radar. NEO Battery Materials Ltd. is a Canadian battery technology company specializing in silicon-enhanced lithium-ion batteries for drones, UAVs, robotics, electric vehicles, and energy storage systems. The patented manufacturing process enables significant cost reductions and addresses key requirements of modern energy storage systems. With NBMSiDE® silicon anodes, the Company achieves high energy densities, ultra-fast charging times, and improved cycle stability. NEO Battery is thus strategically positioning itself as part of the North American battery value chain.

A major milestone is the recent order from a South Korean UCAV manufacturer worth CAD 3 million. As part of "Project David," NEO Battery will supply complete battery systems for modern drone platforms. The aim is to significantly exceed the performance of current lithium polymer systems. The energy density of the prototypes is expected to increase to 333 WH/kg, extending flight times by 25 to more than 50%. At the same time, the Company has completed a long-term lease agreement for a fully functional production facility. With access to this production facility, NEO Battery will be able to begin manufacturing battery electrodes. This should accelerate deliveries to existing automotive customers and new drone partners. The upcoming operational expansion forms the basis for broader industrialization of silicon anode technology. In addition, the Company has agreed on a development cooperation with the US-based Nascent Materials. This partnership combines NEO's silicon anodes with modern LFP and LMFP cathodes. This will result in high-performance battery systems for defense drones and energy storage for AI data centers. Another milestone of the highest order!

NEO Battery is currently performing strongly and is attracting new investors. The CAD 5 million private placement completed in November 2025 significantly strengthens the capital base. The funds are to be used to finance new battery production facilities for cylindrical and prismatic cell formats. In addition, equipment and infrastructure for the 3.2-acre expansion site will be procured. Overall, the combination of technological strength, a growing production base, new industry partnerships, and solid financing creates the ideal conditions for the next growth spurt. The stock can be purchased in Canada under the ticker symbol NBM for approximately CAD 0.47 or at a low cost on Tradegate. The Company is showing strong momentum, so the current valuation of CAD 68 million is certainly only a starting point for its next stages of growth.

CEO Spencer Huh explains the Company's medium-term growth strategy in an interview with IIF presenter Lyndsay Malchuk.

https://youtu.be/9xbC2p6n264

Strategy – Can the Bitcoin collector pick up speed again?

Bitcoin manager Strategy (formerly MicroStrategy) has been hit hard. The market value of Michael Saylor's high-profile company has lost a whopping 60% of its value in the last 12 months. In addition, the Company is also heavily indebted. The problem: the current volatility in the crypto market translates directly into large fluctuations in Strategy's balance sheet and market value. This is because the aggressive growth strategy is based on repeatedly raising capital through stock or convertible bond issues in order to buy additional bitcoins, which, however, dilutes existing shareholders. The risk of over-leveraging is particularly reflected in the balance sheet, as part of the purchases are financed by debt. Continuously rising interest rates could also be a problem here. According to recent reports, Strategy holds a total of 649,870 bitcoins. These holdings were purchased at an average price of around USD 74,433, so it hurts when the underlying asset falls from USD 122,000 to USD 89,500. Currently, the market value of the MSTR stock, at USD 53.4 billion, has even fallen below the valuation of its Bitcoin holdings. The correction could very well continue. Watch this space!

International stock markets are using the cold autumn to consolidate. Over the summer, there have been strong gains, especially in growth stocks. Although everything is running smoothly operationally, BYD shares are in decline, and Bitcoin asset manager Strategy is not faring any better. Excellent news is coming from NEO Battery Materials. Their growing potential is solidified with their transition into a production-ready battery company!