BMW (BMW) Stock Hits 5-Year Low As Profit Outlook Downgraded

AI Summary

BMW (BMW) shares fell 6.5% to a 5-year low after the company cut its 2026 profit outlook, citing decreased demand in China and the impact of the Iran war. The German carmaker noted that positive volume developments in Europe and the USA could not offset the sales decline in China and Asia Pacific. Analysts from Citi reduced their China sales forecasts by over 50,000 units, predicting total sales would be below 500,000 by year's end. The profit warning has adversely impacted the broader European auto sector, affecting BMW's competitors like Volkswagen and Mercedes-Benz.