The Hong Kong-listed shares of BYD experienced a significant surge on Tuesday, climbing as high as 4% before stabilizing. This remarkable performance highlights the market's enthusiasm for the company's latest advancements in smart-driving technology. Over the past week, BYD's stock has seen a 15% increase, and it has risen by 27% since the start of the year. Investors are optimistic about BYD's strategic move to integrate self-driving features into its vehicles, positioning itself as a leader in innovation within the electric vehicle (EV) sector.

BYD is set to introduce self-driving capabilities across 21 new models, maintaining or even reducing prices for some vehicles. This bold step marks a shift from the company's previously cautious approach to autonomous driving. The integration of "God’s Eye," a standard feature in even its most affordable models, underscores BYD's commitment to accessibility and affordability. For higher-end vehicles, BYD plans to incorporate advanced AI technology from DeepSeek, enhancing both safety and convenience. This move not only showcases BYD's technological prowess but also demonstrates China's capability to innovate at lower costs compared to Western competitors.

BYD's decision to offer self-driving features in low-cost vehicles sends a strong message to global markets. While the company does not currently sell in the US, its competitive pricing strategy will intensify rivalry in other regions. Last year, BYD surpassed Tesla to become the world's largest EV manufacturer. Analysts, including those at Goldman Sachs, believe this development signifies a major milestone in the mass-market adoption of autonomous driving technology. BYD's leadership in this area enhances its competitive edge, setting a new benchmark for innovation and affordability in the automotive industry.