Shares of BMW dropped to their lowest level in over five years on Wednesday after the company lowered its profit outlook for 2026, citing a slowdown in Chinese demand and disruptions caused by the Iran war.
The carmaker explained that positive sales developments in Europe and the USA could not offset the decline in China and the Asia Pacific region. Additionally, rising energy prices driven by the Iran conflict are increasing costs and negatively affecting consumer sentiment worldwide.
The company now expects its pre-tax profit to decline significantly. The stock was last seen down by 6.5%.
Analysts noted that BMW’s recent conference call left them with more questions than answers, particularly regarding the company’s structure and cost management. Following the news, Citi analysts adjusted their China sales projections downward by over 50,000 units, forecasting total sales to fall below 500,000 by year’s end.
Source (CNBC)
