Shares in Chinese automakers Xpeng and Geely experienced significant drops on Tuesday amid concerns that they may struggle to compete with BYD’s latest move.
BYD announced it would provide its “God’s Eye” advanced driver-assistance system (ADAS) at no extra charge across 21 models, including its budget-friendly Seagull, which is priced at $9,555. This decision marks a shift in the competitive landscape as BYD offers features akin to Tesla’s smart driving capabilities without additional costs.
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Xpeng’s shares fell by 5.9%, their largest drop in two months, while Geely saw a 7.2% decrease. In contrast, BYD’s shares rose by 0.9%, reaching a record high. Analysts are concerned that BYD’s aggressive pricing could lead to a price war in the already competitive electric vehicle (EV) market. “This is a game-changing move,” said Nomura analysts, noting that the popularity of smart driving technology could be significantly boosted by such an affordable offering.
Previously, BYD had only included ADAS in its higher-end models, starting at $30,000, while Tesla offers similar features in China starting from $32,000. In the U.S., Tesla’s Full Self-Driving (FSD) software costs $8,000 or a $99 monthly fee, though it is not yet available in China.
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Xpeng declined to comment on the situation but referred to founder He Xiaopeng’s statement, where he welcomed the move by BYD, describing it as a step toward the global popularization of smart driving. “We welcome the official upcoming announcement by a leading automaker I respect extremely for its smart driving strategy,” He said.
Source: Reuters