BYD Shocks with Free Autonomous Driving System for All Models, Sending Tesla’s Stock Plummeting

BYD Announces Free Autonomous Driving Feature for All Vehicles, Impacting Electric Vehicle Stock Market

The stock market was rocked recently, first by the unexpected disruption caused by DeepCheck, a Chinese AI company, and now by BYD, a major competitor to Tesla, which has significantly impacted the electric vehicle (EV) market. On February 11, 2025, Tesla’s stock price plummeted by 6.34% to $328.50 per share, marking a sharp decline following the announcement from BYD. As a result, Tesla’s market capitalization dropped to $1.57 trillion, barely holding onto a position above the $1 trillion threshold, falling from 7th to 8th place in global market rankings.

BYD’s announcement sent shockwaves through the market, as the company revealed its collaboration with DeepCheck, the AI firm that previously caught Wall Street's attention. BYD has now officially entered the race for autonomous vehicles by introducing its “Heavenly Eyes” autonomous driving system, which will be standard across all of its vehicle models. What makes this announcement even more remarkable is that BYD is providing this feature for free, whereas Tesla charges customers a premium for its self-driving features.

Tesla’s own self-driving technology, known as "Full Self-Driving" (FSD), requires customers to pay either a one-time fee of $12,000 or a monthly subscription fee of $199. However, Tesla’s system, unlike BYD’s, is not fully autonomous; drivers are still required to keep their hands on the wheel and be ready to take control at any moment, making it more of an assistance system rather than true autonomous driving.

This stark contrast in approach to autonomous driving technology has fueled a major shift in the electric vehicle market. While Tesla is charging customers for a limited, semi-autonomous system, BYD has taken a bold step by offering fully autonomous driving capabilities as a standard feature at no additional cost. The move from BYD has left many questioning whether Tesla’s pricing model and technology will still be viable in the face of rapidly advancing competition from Chinese automakers.

The ripple effect from BYD’s announcement was felt across the broader electric vehicle sector. Rivian saw a decline of 4.23%, while Lucid’s stock fell by 2.89%. Even Nikola, a company whose stock had dropped below $1 in value, saw a small rise, although this was attributed to speculative trading rather than any genuine recovery.

Tesla, already facing growing competition from a variety of EV manufacturers, now finds itself up against a new threat: a rival offering superior technology at no extra charge. Elon Musk, the CEO of Tesla, has been under increasing pressure to refocus on his company’s core business in order to maintain its competitive edge. If Tesla cannot keep up with advancements from competitors like BYD, experts warn that the gap between the two companies will continue to widen, further eroding Tesla’s market dominance.

The stock market’s reaction to these developments highlights just how quickly the landscape of the electric vehicle industry is changing. In just a short time, BYD’s unexpected leap forward in autonomous driving technology has had significant ramifications, with major players like Tesla struggling to keep pace.

In a related development, the DeepCheck shock has also had a massive impact on the U.S. stock market. DeepCheck, a Chinese AI firm, recently unveiled a new chatbot, DeepCheck-V3, which outperformed many of its American counterparts. The company’s success is notable for its relatively low development costs, totaling just $5.57 million for DeepCheck-V3, compared to the $100 million spent by OpenAI on its ChatGPT model. DeepCheck’s success, achieved with far fewer resources, has sent shockwaves through the tech world, prompting concerns about the future of American AI firms.

In light of these events, BYD’s announcement and the broader rise of Chinese innovation in both AI and electric vehicles signal that the industry landscape is rapidly shifting, and traditional players may need to adapt quickly or risk falling behind.