Shares in Chinese automaker BYD surged on Tuesday after the company revealed plans to roll out advanced self-driving technology across nearly all its vehicles, including budget models priced under $10,000.
The automaker also announced it would integrate the software from AI startup Deepseek into its cars, following in the footsteps of domestic competitors like Geely, Great Wall Motors, and Leapmotor.
BYD, Tesla’s main rival in China and increasingly on the global stage, made the announcement on Monday evening, prompting analysts to speculate that a price war could be on the horizon. The company will introduce its “God’s Eye” autonomous driving system in at least 21 models, including the Seagull budget hatchback, priced from 69,800 yuan ($9,550). The system will feature capabilities such as remote parking and autonomous highway navigation, features that were previously reserved for higher-end vehicles. For comparison, Tesla offers similar features on EVs starting at $32,000.
“Autonomous driving is no longer a remote rarity, it’s a… necessary tool,” BYD founder Wang Chuanfu said during a livestreamed event on Monday. He predicted that in a few years, self-driving technology would become as essential as seat belts or airbags.
The integration of Deepseek’s AI software, BYD said, would enhance its self-driving technology and offer a more personalized experience for consumers. Deepseek generated attention last month when it introduced a chatbot capable of competing with its American counterparts at a significantly lower cost.
BYD’s stock climbed 4.5 percent to a record high in Hong Kong on Tuesday, after already rising nearly 20 percent in the days leading up to the announcement.
China’s automotive market, the largest in the world, has been experiencing a sustained price war as EV producers vie for market share. Nearly 11 million electric and hybrid vehicles were sold in the country last year, a 40 percent increase from 2023. BYD accounted for about 4.2 million of those sales, with its quarterly revenue surpassing Tesla’s for the first time in the third quarter.
