Tesla Shares Drop 6% Following BYD’s Autonomous Vehicle Announcement

Tesla Inc. shares plunged 6% on Tuesday (Feb 11, 2025) after Chinese competitor BYD unveiled plans to develop autonomous vehicle technology in collaboration with AI firm DeepSeek.

The rising AI company aims to introduce autopilot-like systems in nearly all new BYD models, intensifying competition for Elon Musk’s electric vehicle giant.

Investor concerns were further heightened following reports that Musk is leading a group of investors looking to acquire OpenAI, adding more uncertainty to Tesla’s business strategy.

Tesla's Market Cap Sheds $200 Billion

Tesla’s stock has been on a five-day losing streak, plummeting nearly 17% over the period to $328.50 per share (~Rp6.2 million), erasing over $200 billion (~Rp3.2 trillion) in market capitalization, according to CNBC International on Wednesday (Feb 12, 2025).

As Tesla’s fiercest rival in the global EV market, BYD announced that at least 21 of its upcoming models would be equipped with autonomous driving capabilities, including automatic parking and highway navigation.

Currently, Tesla has yet to introduce robotaxi services, and its electric vehicles still require a human driver to remain behind the wheel for steering and braking at any time.

During last month’s earnings call, Elon Musk stated that Tesla aims to launch a "Full Self-Driving System Without Supervision" and a driverless ride-hailing service in Austin, Texas, by June 2025.

Meanwhile, Waymo, Alphabet’s self-driving division, has already been operating robotaxi services in Austin, Phoenix, and San Francisco.

Fierce Competition in the Robotaxi Market

Analysts at Morgan Stanley believe that competition between Waymo, Tesla, and several Chinese companies will be a key driver in the commercialization of autonomous vehicles.

“In our view, competition in this space will be the primary catalyst for the future of robotaxi commercialization,” Morgan Stanley analysts wrote in a note to clients following BYD’s announcement.

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