Boom & Bust 2026 – Where can investors still position themselves? BYD, BMW, DroneShield, and Power Metallic Mines

BYD versus BMW – Two automotive giants step on the gas

The automotive year 2025 did not bring any major advances over 2024, as many e-consumers are waiting for the new subsidy in 2026. Now, tax incentives are returning in a significantly different form, with the focus on private individuals with low and middle incomes as well as electric company vehicles. A new subsidy of around EUR 3,000 is planned for the purchase of electric vehicles and plug-in hybrids, subject to EU approval and new subsidy guidelines. Chinese manufacturer BYD clearly led the market for electric vehicles in 2025, setting a new record with 4.2 million units sold. The US industry leader Tesla only sold 1.64 million units, but was still well ahead of German premium manufacturer BMW with around 442,000 units.

The market is difficult for EU companies. This is because the import tariffs imposed by the EU on China are currently having little effect, as BYD can offer discounts of over 25%. These are significantly higher than the special tariffs of 17.4% that have been imposed. In 2026, however, the tide will turn once again. BYD plans to double its dealer network and will soon open its plant in Hungary. This is likely to cause a storm, as the EU special tariffs will then be abolished. Despite problems in China and a weak Q4, BMW increased deliveries in 2025 by 0.5% to a total of 2.46 million units. However, Europe and the US were able to compensate for the China business, with the electric versions of the Mini being particularly in demand. Management expects the new models to provide an electric boost in 2026, especially in China. On the LSEG platform, 14 out of 26 analysts expect BMW's share price to reach around EUR 90, and the share was already slightly higher on Friday. BYD shares, which have consolidated by 45%, are once again being enthusiastically recommended. Here, the potential is estimated at a full 36%. It will be exciting to see how the two manufacturers fare on the capital markets. After all, BMW pays a dividend of close to 5.5% and is worth only half as much as its competitor.

Power Metallic Mines – Part of the North American supply chain for critical metals

Critical metals have become the silent backbone of modern industries, from automotive manufacturing to defense and energy. In the context of growing US-China tensions, access to these materials increasingly defines technological sovereignty. North America is emerging as a reliable counterweight to unstable global supply chains, and companies with access to copper, nickel, and precious metals are gaining strategic importance. Energy supply also remains a key issue. This is because the global expansion of artificial intelligence and cloud infrastructures is driving electricity demand to unprecedented levels and exposing the weaknesses of today's grids. Long-term energy scenarios show that grids with a high proportion of renewable energy require storage in the TWH range, which requires massive investments and enormous quantities of conductive metals. Against this backdrop, raw materials such as copper and nickel are gaining a key role in energy, mobility, and digitalization. At the same time, geopolitical upheavals and a loss of confidence in international financial and legal structures are causing prices for precious and industrial metals to rise. The pressure is mounting!

It is precisely in this environment that Power Metallic is positioning itself with projects in Québec, a region known for political stability, reliable approval procedures, and strong infrastructure. The Company has rapidly expanded its land position around the NISK area, laying the foundation for a contiguous polymetallic system. Macroeconomically, the situation is further exacerbated by forecasts indicating structural bottlenecks for nickel and historically low copper inventories from 2027 onwards. However, Power Metallic is benefiting from repeated high-grade drill results combining copper, nickel, and precious metals in economically relevant concentrations.

A large-scale drilling program in 2026 is planned to refine the geological model and continue delivering news flow. After multiple financing rounds, Power Metallic is well equipped to deploy modern exploration technologies and advance multiple target areas in parallel. In recent days, there has been an increase in value of over 80% in response to suspected short attacks in December. With a market capitalization of around CAD 300 million, the Company is emerging as a potential partner for industrial companies looking to secure future supply of critical metals. The Company is currently showing impressive momentum; as a result, the share price could surge at any time on news.

CEO Terry Lynch provided an overview of the current status of exploration work in Québec at the December International Investment Forum (www.ii-forum.com).

DroneShield – European follow-up order worth USD 50 million provides boost

The Australian drone defense specialist is back. After astonishing price distortions since October, the market value managed to swing back up from lows of EUR 0.80 to EUR 2.30 by Friday. Who would have thought? The trigger was news of a European NATO follow-up order valued at just under USD 50 million. The customer is said to be an unnamed military unit that processed the contract through a European reseller. The order includes handheld drone defense systems, related accessories, and software updates. DroneShield has most of these products in stock and expects all deliveries to be completed in Q1 2026. The primary product sold is the DroneGun Mk4, an ultra-portable system designed for rapid deployment against unmanned aerial systems in diverse operational environments. With estimated revenues of around AUD 250 million in 2025, DroneShield enters 2026 with positive momentum. Whether it will be enough for new record prices is questionable. Investors should note that once the AUD 300 million revenue mark is reached, extensive employee bonuses and options are triggered, a factor that contributed to the 80% price decline in Q4 2025. Caution!

The stock market is currently navigating a multitude of influences. While automotive manufacturers are gradually adapting to the challenges of complex supply chains, companies like Power Metallic and DroneShield are attracting particular attention amid these upheavals. The Australian drone defense specialist is achieving a short-term turnaround, whereas Power Metallic appears well-positioned for substantial upside following a period of consolidation.