Electric Vehicle Stocks Fall as BYD's Free Smart Driving Features Fuel Competition Concerns
SHANGHAI (Reuters) - Chinese electric vehicle (EV) makers Xpeng and Geely Auto saw their stock prices plummet on Tuesday amid fears they will face intense competition from BYD's decision to offer advanced smart driving features as standard across its entire lineup.
Xpeng's shares plunged 5.9%, marking their steepest decline in two months, while Geely's stock dropped 7.2%.
In contrast, BYD's shares listed in Hong Kong surged 0.9% to an all-time high.
Analysts attribute the sell-off in Xpeng and Geely's shares to concerns that BYD's move will erode their competitive advantage in the smart driving technology segment.
BYD's decision to make smart driving features standard across its lineup is seen as a game-changer in the EV market, as it significantly reduces the cost of these features for consumers.
Industry experts believe that this move will put pressure on other EV manufacturers to follow suit or risk losing market share.