A profit warning issued by German premium carmaker BMW sent its shares tumbling as much as 7% on Wednesday to their lowest since late 2020 after the company's guidance surprised some analysts and highlighted the challenges facing the broader auto sector.
The guidance cut late on Tuesday made BMW one of the first European carmakers to reveal the impact that weakness in China's domestic car market, the world's biggest, and pressures arising from the Iran war are expected to have on its 2026 targets.
Wednesday's price fall took BMW shares to their lowest since November 2020 and weighed on shares across the European auto sector, including German rivals Volkswagen and Mercedes-Benz.
"This is the tip of the iceberg," independent auto analyst Matthias Schmidt told Reuters, adding that others were "not immune."
Bad start for new CEO
