BYD shares briefly rose to their highest intraday price on record, reflecting optimism that the Chinese electric vehicle leader will further challenge peers like Tesla through its smart driving strategy.
The car maker’s Hong Kong-listed stock jumped as much as 4.5% to an all-time high on Tuesday after the company unveiled plans to enable advanced driver-assistance features in almost all future models at no additional cost.
It later erased gains, taking a breather following three sessions of advances that pushed it into overbought territory. The shares have climbed more than 20% this year, while Tesla’s have sank 13%.
BYD will make its God’s Eye driver-assistance system standard in vehicles priced from C¥100 000 (R253 000) in China and include it in several lower-cost models such as the popular Seagull hatchback, it said at a company event on Monday. Analysts expect the move to further intensify competition in China’s EV market, already the world’s largest and where the Shenzhen-based firm is a leader.
“BYD is essentially providing a cost-efficient solution, and accelerating the commoditisation of basic self-driving technology,” said Faye Gao, Asian equities portfolio manager at Lombard Odier Investment Managers. “It is a new front in the price war as BYD is adding these features with almost the same price.”
Some shares connected to other Chinese EV firms slid on Tuesday. Xpeng tumbled more than 8%.
BYD aims to deliver five to six million EVs and hybrids this year, up from 4.27 million in 2024. The company finished the year as the seventh-biggest car group by sales globally.
Valuation discount
It fell short of surpassing Tesla as the biggest seller of pure EVs globally last year by less than 25 000 units. However, BYD is set to leapfrog the Elon Musk-run company in annual revenue, on track to exceed $100-billion in sales for the first time in 2024.
Read: The extraordinary rise of Chinese car brand BYD
Despite this year’s rally, BYD’s stock has retained a significant valuation discount to Tesla’s. The Chinese car maker’s shares currently trade at about 18x forward multiples, below their five-year average and less than a fifth of Tesla’s. — Charlotte Yang and Sangmi Cha, with Danny Lee, (c) 2025 Reuters
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