Tesla Stock Falls as BYD, Xiaomi, and XPeng Challenge with New EV Innovations

Tesla Inc. (TSLA) had another rough day on Wall Street, with shares dropping by as much as 3.8% on Tuesday. This latest dip follows a 5% loss at the start of the week, pushing the company’s stock down more than 52% from its December high. The reason? Chinese electric vehicle makers are making big moves, turning up the heat on Tesla.

BYD Breaks Barriers with Supercharged Innovation

China’s leading automaker, BYD, grabbed headlines with its cutting-edge Super e-Platform, capable of charging at a blazing 1,000 kW. To put that into perspective, Tesla’s fastest Superchargers peak at just 250 kW. With BYD’s tech, drivers can add around 250 miles of range in five minutes. That’s practically as quick as a traditional gas station stop.

"Our goal is to eliminate charging anxiety completely, making EV charging as fast as refueling a gas car," said BYD’s founder, Wang Chuanfu. Starting next month, BYD plans to roll out EVs equipped with this new platform, backed by an expansive network of 4,000 ultra-fast charging stations across China.

Xiaomi Accelerates EV Ambitions with Increased Production

Smartphone giant Xiaomi is proving it’s not just a tech player but a serious contender in the EV space. Its stylish SU7 sedan, often compared to a blend of Porsche Taycan and McLaren aesthetics, has become a hit. Featuring a sleek design and Xiaomi's HyperOS system for seamless device integration, the SU7 resonates with tech-savvy drivers.

Responding to growing demand, Xiaomi CEO Lei Jun announced the company will increase its EV production target from 300,000 to 350,000 units. Adding to the excitement, Xiaomi is gearing up to launch the YU7 crossover SUV, a direct competitor to Tesla's Model Y, later this year.

XPeng Reports Financial Growth and Looks to Expand Further

XPeng also joined the spotlight, posting remarkable financial results. The company reported fourth-quarter revenue of 16.11 billion yuan ($2.21 billion), marking a 23% jump from the previous year. Deliveries surged by 52%, reaching over 91,500 vehicles.

XPeng’s first-quarter outlook is equally bullish, expecting revenue between 15 billion to 15.7 billion yuan ($2.07 billion to $2.17 billion) and deliveries of up to 93,000 vehicles, reflecting an impressive 300% year-over-year growth.

"With exciting new models launching in 2025, we’re confident in maintaining strong investments in R&D while improving profitability and cash flow," said XPeng Co-President Brian Gu.

Zeekr Unveils Free Autonomous Driving Software

Meanwhile, Geely-owned Zeekr announced its latest push into autonomous driving. CEO Andy An revealed that the company will provide its self-driving software free of charge to customers in China. The software, initially available to a pilot group, will go public in April. While drivers must keep their hands on the wheel, the system promises a more relaxed driving experience.

This move came just as Tesla launched a free trial of its Full Self-Driving (FSD) software in China, running from March 17 to April 16. However, Tesla’s attempts to expand its autonomous driving offerings in China have been complicated by strict data privacy regulations, limiting data transfers between China and the U.S.

Tesla Faces Growing Pressure in the EV Market

With Chinese automakers innovating at lightning speed, Tesla’s reign as the dominant EV player is facing fierce competition. How Tesla responds to these challenges in the months ahead will be crucial in determining its position in the rapidly evolving EV market.