Tesla Out, BYD In: Is the Chinese EV New Investor's Favourite?

TSLA vs BYD: Investors seem to have a new favorite in the EV market, and it's not Elon Musk's luxury EV maker, Tesla. The shares of the Chinese EV maker BYD have now surpassed those of Tesla, with a year-to-date return of more than 21%. The shares of the US-based EV maker, on the other hand, have struggled to remain in the red territory, with a negative return figure of over 7% on NASDAQ.

This comes at an interesting point of time when the dragon economy is experiencing heightened economic pressure while the US economy continues to stay on a steady path.

China's benchmark index, SSE Composite, has delivered a return of just 1.7% since the start of this year. During the same period, the S&P 500 index has surged by over 3.3%.

Just last year, BYD reported a revenue of $28.2 billion, a 24% increase from the previous year and surpassing Tesla's revenue of $25.2 billion. Despite pouring in heavy discounts and a weak economic trajectory, BYD's bottom lines have remained strong.

Analysts believe that the current optimism of the Chinese automaker's share price trajectory is largely owing to its new driver-assistance software called ‘God’s Eye.'

What is 'God's Eye' software?

BYD recently launched its new driving assistance system, "God's Eye," earlier this week. As per the reports, this software is equipped with high-end technology and is available in three variants.

The company also revealed that it will offer the new software across its entire lineup, including the Seagull budget hatchback, which costs somewhere around $9,550 or Rs 8 Lakh.

The Chinese automaker is also bringing-in premium EV features for all its cars, like remote parking through smartphones and autonomous overtaking. It is worth mentioning that in 2024, the company came close to overtaking Tesla as the top seller of pure EVs globally but fell short of just 25,000 units.

His close alliance with Trump isn't looking so impressive anymore, especially after the Trump administration decided to halt the program meant to expand EV chargers in the US.