BYD outperforms Tesla on stock market after 'God's Eye' launch
What's the story
Chinese automaker BYD, aka Build Your Dreams, has outperformed Tesla on the stock market this year. The company's shares have jumped nearly 20.40% from CNY 282.66 (₹3,360) at the end of 2024 to a record high of CNY 340.30 (₹4,045.80). Meanwhile, shares of Elon Musk's Tesla have dropped over 13% from $403.84 (₹35,085) at the end of last year to $350.73 (₹30,471) on Monday.
Technological innovation
BYD's 'God's Eye' driving system fuels stock market rally
The spike in BYD's shares is also due to the recent launch of its next-gen driver-assistance software, 'God's Eye.' The innovative self-driving system was developed in-house by BYD and will be integrated into all new cars manufactured by the company. The system provides features like remote parking via smartphones and autonomous overtaking on roads, which were previously available only on high-end EVs.
Market response
Analysts weigh in on BYD's 'God's Eye' and market impact
"BYD is essentially providing a cost-efficient solution and accelerating the commoditization of basic self-driving technology," Faye Gao, Asian equities portfolio manager at Lombard Odier Investment Managers, told Bloomberg. S&P Global Mobility analyst Lu Daokuan echoed this sentiment to Financial Times, saying the installation of the 'God's Eye' system has "filled the void" in the self-driving market for vehicles priced below $20,000 (about ₹17.40 lakh).
Financial outlook
BYD's revenue set to surpass Tesla's despite lower valuation
In 2024, BYD came within 25,000 units of dethroning Tesla as the world's largest seller of pure EVs. However, Bloomberg reports that the company is on course to surpass Tesla in annual revenue as it is expected to exceed $100 billion in sales for the first time this year. Despite this financial success and stock market rally, BYD's shares still trade at about 18 times forward multiples, below their five-year average and less than a fifth of Tesla's.