Stock Slide and Slow Sales: What’s Happening in China’s E.V. Market?
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by Aaron KrolikFebruary 19, 2026
AI-Generated Deep Dive Summary
The Chinese electric vehicle (EV) market is experiencing a significant downturn, with investors pulling out due to heightened competition, shrinking profit margins, and the end of government subsidies. Once seen as unstoppable, companies like BYD, now the world’s largest EV manufacturer, have seen their stock prices plummet—BYD by over 40% since last May. This decline reflects broader sell-offs in Chinese EV stocks following weak January sales reports.
The rapid growth of China’s EV sector, fueled by government incentives and strong domestic demand, has reached a turning point. While the market has surged, it is becoming saturated, particularly outside major cities with advanced charging infrastructure. Experts suggest that the number of feasible EV customers in China may already be near its limit, leaving companies like BYD to focus on converting one-time buyers into repeat customers—a strategy more established automakers have long
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Originally published on NYT Homepage on 2/19/2026