Tesla’s stock plunged more than 6% after its major Chinese rival, BYD, announced plans to introduce autonomous vehicles (robotaxis) to the mass market.
On Tuesday, Tesla shares dropped 6.34% to close at $328.50 on the New York Stock Exchange, pushing its market capitalization down to $1.057 trillion, just barely holding onto its trillion-dollar status.
BYD recently partnered with DeepSeek, a generative AI company making waves on Wall Street, to accelerate the adoption of robotaxis. In a bold move, BYD has integrated its autonomous driving system, “God’s Eye,” into affordable electric vehicles priced around $7,000.
The company revealed that God’s Eye, marketed internationally as DiPilot, will be available in three tiers: A, B, and C. The top-tier A, DiPilot 600, will feature triple LiDAR technology for BYD’s premium Yangwang series. The mid-tier B, DiPilot 300, will include LiDAR for Denza and select BYD models. The entry-level C, named DiPilot 100, will offer a triple-camera setup for BYD’s marine series.
This rollout ensures that nearly all BYD vehicles priced above 200,000 yuan ($30,000) will come with an autonomous driving system. Models priced between 150,000 yuan ($20,500) and 200,000 yuan ($27,000), and even those in the 100,000 yuan ($13,700) to 150,000 yuan ($20,500) range, will also feature some level of autonomous capability.
BYD’s aggressive expansion into autonomous driving presents a major challenge to Tesla, which has yet to gain approval for its Full Self-Driving software in China.
This competitive pressure is the key driver behind Tesla’s sharp 6% stock decline following the announcement.