Shares in Chinese automaker BYD surged on Tuesday after the company revealed plans to introduce advanced self-driving technology across nearly its entire range, including budget models priced below $10,000.
The automaker also announced that it would incorporate AI startup Deepseek’s software into its vehicles—a move in line with domestic competitors such as Geely, Great Wall Motors, and Leapmotor. As Tesla’s primary rival in China and an emerging global contender, BYD’s announcement has led analysts to predict that a new price war could be looming.
BYD plans to equip at least 21 models with its “God’s Eye” autonomous driving system, including the Seagull hatchback, which starts at 69,800 yuan (approximately $9,550). This system offers features such as remote parking and autonomous highway navigation, capabilities previously reserved for higher-end vehicles. In contrast, Tesla’s comparable features are available only on its EVs starting at $32,000.
“At this point, autonomous driving is no longer a remote rarity—it’s a necessary tool,” BYD founder Wang Chuanfu remarked during a livestream on Monday. He added that self-driving technology is set to become as indispensable as safety belts or airbags in the near future.
The integration of Deepseek’s software is expected to enhance the performance of BYD’s self-driving system and offer a more personalized experience to consumers. Deepseek garnered attention last month after unveiling a chatbot that reportedly competes with American alternatives at a fraction of the cost.
Following the announcement, BYD’s shares in Hong Kong jumped 4.5 percent to a record high on Tuesday, after already climbing nearly 20 percent in the days leading up to the event. The Chinese auto market, the world’s largest, has been embroiled in an intense price war among dozens of EV producers eager to capture market share. Last year, nearly 11 million electric and hybrid vehicles were sold in China—a more than 40 percent increase from 2023—with BYD accounting for about 4.2 million of those sales. Notably, BYD’s quarterly revenue surpassed Tesla’s for the first time in the third quarter.