Tesla’s stock price fell by over 5% on Tuesday, closing down amid increased competition from rival automakers in China. The decline follows a 5% drop for Tesla’s shares at the start of the week and marks a significant decrease from its peak in December.
BYD, China’s top automaker, announced a major breakthrough with its new battery technology, dubbed the Super e-Platform. This system can charge electric vehicles (EVs) at speeds of up to 1,000 kW, providing 250 miles of range in just five minutes. In contrast, Tesla’s fastest superchargers max out at 250kW.
BYD plans to start selling EVs with the Super e-Platform next month and will add 4,000 high-power charging stations in China. Meanwhile, upstart EV maker Xiaomi expanded its production capacity for its vehicles, aiming to produce 350,000 EVs in 2023. The company’s CEO announced a new goal to boost production as it struggles to meet customer demand.
Chinese pure-play EV maker XPeng also reported strong financial guidance for the first quarter, expecting revenue of $2.07 billion and deliveries of up to 93,000 vehicles. XPeng’s success has caught the attention of legacy automakers, with Volkswagen investing $700 million in the company to build VW-branded EVs.
Tesla rival Zeekr, owned by Geely, announced plans to roll out its autonomous software for free in China. The company aims to offer the software to a pilot group initially and release it to the broader public in April. This move follows Tesla’s news about offering a free trial of its Full Self-Driving (FSD) autonomous software.
Tesla’s data collection struggles in China due to government regulations are also a concern for the company. As a result, it has had difficulty sending data collected in China to its servers in the US and vice versa. The increased competition from rival automakers puts pressure on Tesla to adapt and improve its products.
Source: https://finance.yahoo.com/news/tesla-stock-falls-again-as-chinese-rivals-byd-xiaomi-and-xpeng-announce-new-updates-164409186.html