BYD Records a 21% Shares Rise as Industry Awaits Update on Its Self-Driving Technology

Stocks of Chinese EV maker BYD have risen to a new high since 2020 after gaining 21%. According to Yahoo Finance the BYD share rise was triggered by investor excitement ahead of the company’s update on its smart-driving technology.

BYD’s stock performance in the Hong Kong stock exchange raised expectations of progress in its autopilot system. The company is also expected to unveil new intelligence features to its cars during an event that will happen on Monday February 10.

Intensifying Competition

Analysts expect the updated version of BYD smart-driving technologies to intensify competition in the Chinese EV market. The Shenzhen-based manufacturer is currently the biggest EV manufacturer in the world.

The newly updated driving technology could also enhance BYD’s efforts to penetrate new markets particularly at this time when the US and EU have imposed hefty tariffs on Chinese EVs.

“BYD’s acceleration of autopilot progress will have a meaningful impact on the market given its position as industry leader, and other players, especially mass market brands, will follow,” Analysts from Goldman Sachs Group wrote in a note.

The analysts added that Goldman Sachs expects BYD to disseminate its experience from the recent road-test with new model pipelines, including the autopilot system.

Battle for Self-Driving Technologies

EVs are becoming a major battleground as the race to create and roll-out driving technologies intensifies in China. EV manufacturers like XPeng and Tesla have made huge investments in driving technologies. The two Chinese EV firms are putting extra effort to convince consumers to pick their products as the convenient and safe options.

Although full self-driving vehicles are not widespread in China, companies based in the Asian country are already developing technologies that they need to make this happen. The number of companies that have deployed assisted driving functions on Chinese highways and complex urban roads has increased significantly in recent months.

Driving technology features have become important selling points for car manufacturers and a major differentiator in the market. Startups like XPeng and Nio are focusing on developing their own software stacks and chips. This allows them to optimize their systems and gives them more control. The expectation is that integration of smart driving technologies like interactive displays and advanced AI assistants will improve the overall driving experience for Chinese EV owners.

High Bets on EV Companies

This week, investors bets on Chinese EV manufacturers have been high. Option bets climaxed on February 6 when more than 22.000 contracts were traded. On Friday February 7, option volumes tripped the 20-day average. Li Auto traded in excess of 35,000 options on February 7. This was the highest volume the company has traded since May last year.

Geely Automobile Holdings traded close to 9000 contract options, the highest for the company in over four months. This week was also characterized by strong Chinese EV supply chain stocks. BYD stocks surged 27% while IMotion Automotive gained 49%. BYD Electronic contract options reached a new high on Thursday February 6 and maintained the same performance on Friday February 7.

Last year, BYD’s November sales data showed that the EV maker was going to surpass Ford and Honda’s global sales after its sales revenue increased by 16.6% compared to the same period in 2023. The company achieved this milestone after entering a $1 billion deal to establish a plant in Turkey and engaging in a massive hiring spree.

BYD is looking to sell between up to six million electric vehicles and hybrid cars this year. This target represents an increase of 4.27 million units that the company delivered in 2024. The China-based EV manufacturer was the eighth largest vehicle maker by sales last year.