BMW shares fell sharply on Wednesday, dropping to their lowest level in more than five years after the German automaker lowered its profit outlook for 2026.
The company said positive sales growth in Europe and the United States was not enough to offset weakening demand in China and the wider Asia-Pacific region.
As a result, BMW now expects a significant decline in pre-tax profit. The warning sent its shares down about 6.5%.
According to analyst notes cited in the report, concerns remain over BMW’s cost structure and long-term strategy. Citi analysts also reduced their China sales projections and expect total deliveries to fall below 500,000 units this year.
The report said BMW’s outlook added pressure on the broader European auto sector. Shares of Volkswagen and Mercedes-Benz also weakened as automakers continue to face rising competition from Chinese electric vehicle manufacturers, stricter regulations and geopolitical uncertainty.
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BMW stock slumps to 5 year-low as Iran war and China slowdown spark profit warning https://t.co/e8AQsrrTlj
— CNBC (@CNBC) June 17, 2026
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