BYD sales figures plummet! Power Metallic Mines as the raw materials king and Volkswagen on a transformation course

BYD – Focusing on global expansion

Electric vehicle pioneer BYD is currently struggling with sales figures. Sluggish sales continued in January. Only 210,051 vehicles were sold, representing a decline of over 30% compared to the previous year. This is the fifth consecutive month in which figures have fallen. There are two main factors behind this: fierce competition in industry and a noticeable decline in demand in the Chinese domestic market. BYD suffered particularly noticeable losses in the important plug-in hybrid segment, its historical driving force. New models with improved batteries are now set to compete with up-and-coming rivals such as Geely and Leapmotor.

Exports remain the counterbalance to the domestic slump. With over 100,000 vehicles delivered in January alone, international business remains the growth engine. The company is aiming to sell 1.3 million units outside China this year, an ambitious increase of 24%. This international push was crucial in enabling BYD to replace Tesla as the world's largest electric vehicle seller last year. However, analysts expect the Chinese market as a whole to stagnate, not least due to reduced government purchase incentives.

To further reduce its dependence on the domestic market and expand its international presence, BYD is pushing ahead with its global production offensive. New manufacturing facilities in Hungary, Brazil, and Thailand are set to start operations soon, supplemented by assembly plants in countries such as Indonesia and Turkey. At the same time, the sales network in Europe is growing rapidly. With a broad model range, from compact city cars to large family sedans, BYD aims to cover up to 85% of European demand segments. The coming quarters will show whether this global drive can more than compensate for the continuing weakness in China. The share is currently trading at EUR 9.936.

Power Metallic Mines – Explorer with a clear dual strategy

In an industry that often thrives on individual projects, Canadian explorer Power Metallic Mines is pursuing a remarkable dual strategy. Management is not only purposefully driving its flagship NISK project toward production readiness, but is also pursuing one of the most aggressive exploration campaigns in the explorer sector. This strategy combines securing a known value with a systematic search for the next big find. A recently completed massive purchase of claims has significantly expanded the exploration base for this to 313 sq km. It is an attempt to mitigate the classic exploration risk through a two-pronged approach on a broader playing field.

The foundation for its valuation as a future producer was recently laid by excellent metallurgical test results. Analyses by an independent laboratory show metal yields of up to 99% for copper and over 93% for valuable accompanying metals. This significantly exceeds industry assumptions. For investors, this represents a decisive economic lever. Significantly more saleable metal is extracted from the same rock. In addition to copper, nickel, platinum, palladium, gold, and silver, there is even cobalt. These data transform the project from a theoretical resource into a high-grade and technically well-processable deposit.

While the economics of the core project are being substantiated, a broad-based drilling campaign is underway. The company has strategically expanded its land package on a massive scale and now controls a large, continuous trend. On this expanded area, not only are known zones being extended, but multiple newly identified, high-ranking targets are being pursued simultaneously. The geological model that led to the original discovery is serving as a roadmap for this "multi-shot" offensive. This approach offers shareholders several concrete levers for value-enhancing news and spreads the discovery risk across an entire portfolio of opportunities over the coming months. The share is currently trading at CAD 1.34.

Volkswagen – Between financial respite and structural change

The Wolfsburg-based group's current figures paint a paradoxical picture. While operating profitability is under significant pressure, unexpectedly strong cash flow development is attracting attention. This discipline in working capital and investments has created a financial buffer zone. For investors, this liquidity is a decisive factor that ensures management's ability to act in a phase characterized by far-reaching strategic decisions. This leeway must now be used to fundamentally improve profitability.

Three fundamental areas of focus are driving this transformation. In China, once the engine of growth, the group is now fully committed to locally developed models and architectures in order to reduce costs and respond more quickly. At the same time, a major technology partnership in the software sector is intended to strengthen competitiveness in Western markets. In its home market, rigorous cost-cutting measures, including salary freezes, underscore the commitment to necessary cost consolidation. The locally developed platforms in China are a real stress test for the group's often-criticized agility.

The outlook now depends on implementation. The family of affordable electric models announced for this year aims to stabilize volume and market share in Europe. However, the real test will be to translate financial stability into a sustainable operational recovery. The focus is on profitability in China, progress in the software alliance, and the consistent realization of efficiency targets. If this balancing act is successful, the foundation for a more stable future could be laid. The successful launch of the new compact electric vehicles will be an early, tangible indicator of market acceptance of this realignment. The share price is currently trading at EUR 102.45.

The wave of electromobility is clearly dividing the strategies of the players. BYD is struggling with weak domestic demand and is putting all its eggs in one basket with a global expansion offensive. Power Metallic Mines is consolidating its position as a future raw materials supplier through excellent metallurgy and aggressive exploration on a vast land parcel. Volkswagen is using a financial respite to embark on a far-reaching but risky transformation course that must address problems in China, with software, and with costs. The battle for supremacy will be decided not only by sales figures, but increasingly by securing raw materials and profitability.