BYD shares rise to record high even as Tesla continues to slump

BYD shares rose to a record high today after the company unveiled a new technology that can charge an electric car in only five minutes. Tesla shares meanwhile continue to slump amid concerns over tepid sales and CEO Elon Musk’s political activities.

Yesterday, BYD unveiled its “Super e-Platform” technology, which is capable of peak charging speeds of 1,000 kilowatts and will allow cars to achieve a range of 400 kilometers in only 5 minutes. At the launch event, Wang Chuanfu, chairman and president of BYD said, “The ultimate solution is to make charging as quick as refueling a gasoline car.”

Fast charging, access to more charging stations, and a higher range are among the factors that can boost EV (electric vehicle) adoption and get more fence-sitters into buying an electric car. Importantly, a battery is the most important hardware component of an EV and is the costliest as well.

BYD to offer quick charging

Quick charging has been gaining traction in China and last year Zeekr said that new batteries can go from 10% to 80% charge in a mere 10.5 minutes. On the other hand, Tesla’s superchargers have a charging rate of up to 500 kilowatts which allows the vehicle to achieve 270 kilometers of range in 15 minutes.

Meanwhile, BYD’s latest battery charging technology could be a game-changer. In their note, Macquarie Capital analysts, including head of China autos Eugene Hsiao said, “We believe this is another sign that BYD is undergoing a strategic shift.”

They added, “Rather than competing on price, vehicle design, or entering new product niches, BYD appears to be looking for ways to leverage its scale and core EV technologies to differentiate in a highly competitive market.”

According to Macquarie, “By directly addressing one of the key hurdles to BEV adoption (charging speed), the company is offering customers a clearer path to switch from ICEs to EVs.”

BYD reported stellar deliveries

BYD sells both BEVs (battery electric vehicles) and PHEVs (plug-in hybrid vehicles) and is the biggest global seller in the combined category known as NEV (new energy vehicles).

In February, BYD sold 322,876 NEVs, which took its total deliveries in the first two months of the year to 623,384 – a YoY rise of 92.5%. Notably, while other Chinese EV companies reported a sequential fall in deliveries, the February deliveries of BYD, Zeekr, and Xpeng Motors were high compared to January.

BYD sold 67,025 vehicles in international markets in February, which was a new record. While several countries, especially the EU, have clamped down on EV imports from China to protect their domestic industries, Chinese EV companies haven’t pared back their ambitions and continue to target export markets aggressively.

Elon Musk has praised Chinese EV companies multiple times

Elon Musk has been all praise for Chinese EV companies and the country’s EV ecosystem. During Tesla’s Q4 2023 earnings call earlier last year he said, “Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”

He added, “The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established.”

Tesla’s deliveries sag

According to preliminary data from China’s Passenger Car Association, Tesla shipped 30,688 cars in China last month which was almost half of what it did in the corresponding month in 2024.

The fall in Tesla’s deliveries at the beginning of the year is not surprising as it tends to push deliveries towards the end of the year, including through promotions. Moreover, the Elon Musk-run company has refreshed its Model Y – its best-selling model – so some buyers might have deferred purchases to get the latest model.

However, there are fears of a “buyers strike” as Musk’s politics haven’t gelled well with many potential Tesla buyers. Tesla’s deliveries were weak in the US in January, while sales in Europe have plummeted too. With sales falling in China – its biggest market outside the US – troubles seem to be compounding for Tesla.

Tesla faces a tough ride in China

The Chinese EV market is anyways the most competitive globally and foreign and domestic companies compete aggressively for a pie of the world’s biggest market for electric cars. With Chinese EV companies coming up with compelling product propositions at attractive prices, foreign automakers like Tesla could face a bumpy road ahead.

Notably, Tesla’s China sales fell at a time when BYD’s deliveries have been strong in the world’s biggest market for electric cars. Tesla’s sales woes have prompted some analysts to lower their target price. Earlier this week, Mizuho lowered Tesla’s target price from $515 to $430 while maintaining its outperform rating.

“We believe TSLA’s sales woes are the result of a deterioration in geopolitics, brand perception (US/EU), share loss due to stronger competition (China), and softer-than-expected demand for the Model Y refresh,” said analyst Vijay Rakesh in his note.

BYD to offer self-driving features for free

Last month, BYD released an assisted driving system named “DiPilot” in partnership with DeepSeek. The Chinese AI (artificial intelligence) startup created waves with its low-cost AI model, which performed better than models from OpenAI and Meta Platforms on some parameters. BYD would offer assisted driving for free and would become the only automaker offering these features in cars priced below $10,000.

While one may argue that players like Tesla and Xpeng Motors offer a more advanced version of autonomous driving, BYD offering assisted driving for free has raised fears about other companies’ ability to charge premium pricing for their self-driving features.