Core Viewpoint - BYD's share price has declined significantly due to disappointing earnings, with net profits falling 30% year-over-year in Q2, amid intense competition in the Chinese EV market [1][2]. Group 1: Financial Performance - BYD reported a 30% decrease in net profits for the second quarter compared to the same period last year [1]. - The company's disappointing results were somewhat offset by a 50% increase in overseas revenues from the previous year [3]. Group 2: Regulatory Environment - BYD is facing scrutiny from Chinese regulators due to practices such as heavy discounting and delayed supplier payments, which are common in the EV industry [2]. - The company's earnings report indicated that "short-term profitability" has been impacted by "industry malpractices" including excessive marketing and discounting [2]. Group 3: Strategic Initiatives - BYD has been expanding its global footprint, building a fleet of car-carrying cargo ships to meet rising demand in markets like Europe, Brazil, and Mexico [4]. - The company has plans to establish factories in Brazil, Hungary, and Turkey as part of its aggressive global expansion strategy [4]. - In a notable achievement, BYD outsold Tesla in Europe last month, marking the second time this year it has done so [4].