How BYD Leverages Its Lead, How Power Metallic Mines Benefits, and Why Mercedes-Benz Needs to Catch Up

BYD – Between domestic slump and global drive

Chinese electric vehicle pioneer BYD remains one of the most dynamic players in the global race for the mobility of the future. But in September 2025, the picture is mixed. While international expansion is gaining momentum, business at home is coming under pressure. Investors would do well to take a closer look at these opposing forces. In the domestic market, BYD is feeling the effects of increasing maturity and fierce competition. The Company has revised its sales target for this year downwards. Competitors such as Tesla and up-and-coming Chinese manufacturers are sensing an opportunity and are growing faster in some segments.

Despite this dip, BYD maintains its position as the undisputed market leader for electric vehicles in China, but must now get used to a slower pace. In response to saturation in China, BYD is vigorously pushing ahead with internationalization. A key component of this is a massive expansion in Europe. Starting in the fall, the dealer network in Germany will be significantly expanded. Even more important is the establishment of local production. Production of models such as the compact Dolphin Surf is set to start in Szeged, Hungary, before the end of this year. This local-for-local strategy shortens supply chains, circumvents EU tariffs, and strengthens customer proximity. At the same time, BYD is expanding its financing and leasing services division with partners in order to gain a sustainable foothold in Europe.

The financial impact of this strategy is clearly visible. A significant decline in net profit is expected for 2025. This reflects the pressure on margins from competition in China and the high investments in global expansion. Nevertheless, many analysts are confident about the future. They expect earnings to recover in the coming years. The drivers of this long-term growth narrative are the consolidating market position in China, the growing international presence, and the Company's own technological leadership, for example, in ultra-fast charging solutions. The share price appears to have found a floor around EUR 11.40 and is currently trading at EUR 12.08.

Power Metallic Mines - Drill results confirm Lion Zone

Power Metallic's recent drilling in the Lion area provides solid data supporting the continuity of mineralization. Infill drilling, aimed at improving future resource modeling, not only validates the existing model but also highlights the known variability in thickness and grade. While holes like PML-25-015 and PML-25-020 returned excellent values, others, such as PML-25-016a, were narrower and lower grade. This data improves the reliability of the geological model and increases operational planning certainty. At the same time, the Company has strategically expanded its land package in Quebec.

The most impressive results of the spring program were announced on September 22. Drill hole PML-25-020 intersected 4.57% copper equivalent (CuEq) over 22.66 m, including a 6.05 m section grading 9.70% CuEq. Even higher grade was drill hole PML-25-015, which returned 4.28% CuEq over 28.0 m, including a 3.4 m section with a remarkable 15.45% CuEq. These results highlight the potential for compact, high-grade zones within the larger ore body. Results from drilling in the Tiger area and other regional targets are still pending. These high-grade intervals are strategically important for future economic evaluation. The acquisition of an exploration license in Saudi Arabia further strengthens the portfolio for the long term.

To improve exploration efficiency, the Company is investing in infrastructure. The construction of a year-round drivable drill pad road with bridges over rivers is in the planning stage, which will enable the use of more powerful drilling rigs in the Lion area in the future. This should increase the productivity of the ongoing fall campaign. Additionally, one of the helicopter-transportable drilling rigs will be deployed to investigate promising conductivity anomalies identified by airborne geophysical mapping. Power Metallic is well-positioned operationally for the challenging exploration work ahead this fall and winter. The coming months are likely to be exciting. The stock is currently trading at CAD 1.47.

Mercedes-Benz – In the whirlwind of change

The Stuttgart-based automaker is experiencing a challenging year. The latest figures are far from encouraging. Revenue slumped by 8.6% in the first half of the year, while operating profit fell by over 40%. This weakness is driven by a harsh market environment with subdued demand, noticeable price sensitivity among customers, and trade tariffs, which are putting additional pressure on margins. In China, a traditionally important market, sales slumped by nearly one-fifth. Here, cheaper local electric vehicle manufacturers like BYD are putting increasing pressure on the premium manufacturer.

Nevertheless, the Company continues to demonstrate financial robustness. Solid net liquidity of EUR 30 billion provides a strong cushion for the upcoming transformation. Noteworthy is the strong free cash flow of EUR 4.2 billion in the first six months, which secures the dividend and signals the Company's ability to act. This financial basis is crucial for managing the costly electrification of the portfolio. At the same time, the internal "Next Level Performance" program is underway, which aims to reduce production costs by 10% by 2027. The efficiency gains from this are urgently needed.

The product offensive remains ambitious. More than 40 new models are planned by 2027, with a focus on electric mobility. The new all-electric GLC and the technologically promising electric CLA are the first visible steps. The latter impresses with a range of up to 866 km and the deeply integrated MB.OS operating system. The challenge will be to sell these innovations profitably in an increasingly competitive market. The short- to medium-term profit forecast remains cautious in view of the high investments and market challenges. The share price has been trending sideways for some time and is currently available for purchase at EUR 53.44.

In the fiercely competitive race for electromobility, a clear picture is emerging: despite current declines in profits, BYD is consistently focusing on global expansion and thus extending its lead. Power Metallic Mines is underpinning its potential as a future raw materials supplier with spectacular drilling results and is benefiting directly from the battle for critical metals. Mercedes-Benz, on the other hand, urgently needs to implement its ambitious electrification offensive profitably in order to keep up, given plummeting margins and difficult business in China. The battle for value creation has shifted to supply chains.