Why is BMW stock falling?
A: BMW lowered its profit forecast mainly because tariffs have increased production costs, and worsening conditions in key markets such as China have led to lower than expected sales. The decline in BMW share price stems from a confluence of factors including the automotive industry’s inherent fluctuations, escalating tariffs burdening supply chains, and declining demand in major markets like China.BMW’s weaknesses are: High dependence on low-growth markets. Weak distribution in some automotive markets. Weak distribution in some motorcycle markets.
Is BMW a good investment?
An often-overlooked aspect when purchasing a new vehicle is its resale value. A car is an investment, and it’s important to choose a brand that will hold its value over time. This is another area where BMW shines. BMW vehicles are known for their outstanding resale value. When comparing the BMW brand to the Toyota brand, BMW has the advantage in the areas of horsepower, towing capacity and variety of models offered. Toyota has the advantage in the areas of new car pricing, used car pricing, depreciation, overall quality, reliability, safety and retained value.