Driving Factors and Analysis of BYD (002594.SZ) Becoming a Hot Stock

BYD (002594.SZ) made it to the hot list on December 29, 2025, with driving factors covering price, industry, and technical dimensions. On the short-term price front, the stock price rose 5.71% in the past 5 trading days, with a monthly increase of 5.30%. The trading volume on that day was 51.92M, which was 1.36x the average volume, indicating a significant increase in market participation [0]. In terms of industry and performance, an analysis on December 7 pointed out its record-breaking monthly NEV sales and surging exports. CleanTechnica reported a 213% growth in commercial EV sales in 2025, reflecting the company’s comprehensive expansion in the new energy vehicle sector [1][2]. From a technical perspective, the KDJ indicator shows a bullish signal, and short-term bullish sentiment has strengthened [0].

BYD’s popularity is the result of the combined effect of short-term price momentum, strong fundamentals, and technical signals. Analysts’ expectation of a potential 40% upside in its A-share target price has further amplified attention [1]. However, the overbought RSI contrasts with the high P/E valuation (72.09), reflecting the complexity of market sentiment. Geopolitical factors such as U.S. security policies may affect its overseas business and need continuous attention [1].

: RSI indicates overbought, which may face correction pressure in the short term; the trend is sideways, with unclear long-term direction; high P/E valuation means higher investment costs; geopolitical uncertainty may affect the external environment [0][1].
: The continuous expansion of the NEV market and the rapid growth of commercial EVs provide performance support; analysts’ positive ratings and target prices imply upside potential [1][2]. It is necessary to pay attention to the breakthrough of the support level ($95.83) and resistance level ($101.16) to judge the short-term trend [0].

BYD (002594.SZ) became popular due to short-term price momentum, increased trading volume, growth in NEV sales, and positive analyst expectations. Currently, the technical KDJ is bullish and RSI is overbought; the valuation P/E is 72.09, and the market capitalization is $902.57B; the support level is $95.83 and the resistance level is $101.16. Investors should pay attention to its sustained sales performance, geopolitical dynamics, and changes in technical indicators, and comprehensively evaluate the basis for decision-making.