BMW stock slumps to 5-year low as Iran war and China slowdown spark profit warning

A BMW vehicle on a flatbed truck at a Carvana vending machine location in Uniondale, New York, US, on Tuesday, April 16, 2024. Angus Mordant | Bloomberg | Getty Images Shares in BMW tumbled to their lowest level in over 5 years on Wednesday after the German carmaker cut its 2026 profit outlook, citing a slowdown in Chinese demand and disruption caused by the Iran war. In a statement released Tuesday morning, the carmaker said that "positive volume developments in Europe and the USA cannot compensate for the sales decline in China and Asia Pacific." BMW added that elevated energy prices driven by the war in Iran are weighing on costs, as well as "negatively impacting consumer sentiment across markets around the world." The group's pre-tax profit is now expected to fall "significantly," the firm added. Its shares were last seen down 6.5%. Deutsche analysts said in a note published Wednesday that BMW's conference call left them with "more questions than answers", and were left concerned by the lack of a "comprehensive update on the company's structures and costs." Upon the news, Citi analysts reduced their reduced China sales assumptions by over 50k units and anticipate total sales will fall below 500k by the end of the year. …