BMW Ends Preference Shares, Reveals All-Electric iX5 as Stock Hits Fresh 2025 Low of €57.06

BMW capped a tumultuous session on June 30 with two landmark events – the final trade of its long-standing preference shares and the global premiere of a fifth-generation X5 – yet the stock still slumped to a new 52-week low of €57.06, extending a year-to-date loss of nearly 40%. The previous trough of €57.52, set just a day earlier, was quickly overtaken as selling pressure persisted.

The centrepiece of the product unveiling was the fully electric iX5 60 xDrive. It packs a 425 kW drivetrain from the sixth-generation eDrive family, an 800-volt architecture for faster charging, and a 141 kWh net battery pack for European models. Crucially, the iX5 rides on an evolved version of the existing CLAR platform rather than the upcoming “Neue Klasse” architecture. BMW’s new “Heart of Joy” control module – said to be ten times faster than previous systems – integrates powertrain, chassis, brakes and steering into a single brain. Around a third of the vehicle’s weight comes from secondary raw materials.

In total, the new X5 line-up spans five powertrains: petrol, diesel, plug-in hybrid, battery-electric and, from 2028, hydrogen fuel-cell. Series production for Europe is slated to begin in the second half of the year, with Munich’s plant also gearing up for the Neue Klasse ramp.

Structurally, the day was even more consequential. The conversion of all preference shares into common stock took legal effect when the amended articles were registered. Each preference share is swapped for exactly one voting common share, leaving BMW with a single share class. Management argues the move will boost transparency for international investors and improve liquidity in the common stock. Banks are expected to complete the book-entry transfers in the first week of July.

Should investors sell immediately? Or is it worth buying BMW?

Yet none of this sufficed to halt the sell-off triggered by the steep profit warning issued in mid-June. BMW slashed its EBIT margin target for the automotive division to a range of just 1% to 3%, down from a prior forecast of up to 6%. The main culprit is the accelerating slump in China, where combustion-engine models are piling up at dealerships. Higher energy costs linked to the Middle East conflict have compounded the pressure.

“The BMW crisis is a canary in the coal mine for the entire premium segment,” one market observer noted, as rivals Mercedes-Benz and Volkswagen also came under fresh selling pressure. Yet some analysts see the rout as overdone. Goldman Sachs maintains a buy recommendation on the Munich-based automaker, arguing that the industrial business’s net cash position now exceeds its entire market capitalisation. At Jefferies, analyst Philippe Houchois upgraded Mercedes-Benz to “Buy” on Sunday – albeit with a lower price target of €52 – but no comparable rating change has been issued for BMW.

Despite the operational headwinds, the board is holding firm on shareholder returns. The ongoing share buyback programme continues unchanged, and the dividend payout ratio of 30% to 40% remains intact. BMW still expects free cash flow in the auto division to exceed €2.5 billion. The company acknowledged that the further cost-saving measures it is preparing will weigh on earnings in the second half of 2026.

The relative strength index fell to 19 after Tuesday’s slide, signalling deeply oversold territory. But with the full half-year report due on July 30 – when management must spell out the details of its efficiency plan – the stock is likely to remain vulnerable in the near term. The new X5, book-ended by the preference share conversion, is BMW’s attempt to buy time and rebuild confidence until the Neue Klasse arrives in mid-2026. Whether that is enough to turn the tide remains an open question.