### Tesla Stock Plunge: The Challenge of BYD and Huawei, and Future Prospects

Recent Tesla Stock Trends

Recently, Tesla's stock price has plummeted, falling by 15% in 5 days and nearly 30% in 2 months. In particular, as of February 17, it fell from $480 to $320, shocking investors. Since stock prices are highly volatile, it is important for medium- to long-term investors to monitor the situation closely.

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Reasons for Tesla's Stock Price Decline

1. China's Autonomous Driving Technology Challenge

The main reason for Tesla's stock price decline is that competition is intensifying as BYD (Build Your Dreams) and Huawei actively promote autonomous driving technology in China.

🔹 BYD's Autonomous Driving System

• BYD's "Celestial Eye (神眼)" Autonomous Driving Technology
  • The 'Celestial Eye' (神眼) system announced in China is emerging as a technology that can replace Tesla's FSD (Full Self Driving).
  • It promotes a strategy of providing autonomous driving technology at a lower price.
  • BYD's stock price rose 16.7% in the last 3 days.
• Differentiation from Tesla
  • Tesla's FSD is AI-based and installed in the vehicle.
  • BYD's strategy is to increase AI performance with cheap hardware.
  • This may weaken Tesla's competitiveness in the Chinese market.

🔹 Huawei's Autonomous Driving Platform

• Huawei's "ADS 2.0" Autonomous Driving System
  • A model similar to Tesla's FSD license business.
  • Huawei is already supplying autonomous driving systems to several automakers in China.
  • It is rapidly building the electric vehicle ecosystem that Apple had planned.
  • Moving to apply more advanced technology than Tesla.
• What Tesla Should Be Concerned About
  • Tesla's FSD model may lose competitiveness in the global market.
  • Huawei's AI and semiconductor technology are rapidly developing, which may weaken Tesla's strengths.

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Future Prospects

1. Tesla's Response Strategy

Tesla is not just a car company, but its core business is FSD (autonomous driving) and AI-related software. However,

• FSD is scheduled to launch in Texas, USA in June (likely to be promoted due to close ties with the Trump administration).
• Expanding into robot and energy businesses in addition to electric vehicles.
• Although it will have difficulties in the Chinese market, it is likely to remain competitive in the North American and European markets.

2. Protectionist Measures in the U.S. Market

Currently, it is not easy for Chinese electric vehicle and software suppliers such as BYD and Huawei to enter the U.S. market.

• As the U.S. is strengthening protectionist policies, it is difficult for Chinese autonomous driving companies to grow in the U.S.
• Tesla is still the most powerful electric vehicle and autonomous driving company in the U.S.
• If the FSD infrastructure is expanded in the U.S., Tesla may rise again.

3. Points to Consider for Stock Investors

Tesla's stock volatility is high, but there is no need to unconditionally cut losses if it falls in the short term.

• In the long term, there is a possibility of a rebound when FSD technology is released in June.
• Although competitiveness in the Chinese market may decrease, it is still strong in the North American and European markets.
• Investors need to judge whether to take advantage of the recent decline as an opportunity or see it as a risk.

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Conclusion

Tesla's stock price has recently experienced significant volatility amidst strong challenges from BYD and Huawei, but considering the introduction of FSD in June and U.S. market protection policies, there is still long-term growth potential even if there are short-term adjustments.

BYD and Huawei are threatening Tesla's dominance, and in particular, low prices and new technologies are expected to be a major strength in the Chinese market. However, if Tesla quickly introduces FSD software in the U.S. and Europe, it is likely to regain its competitiveness.

Investors should carefully evaluate Tesla's long-term vision while considering uncertainties in the Chinese market.

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[Related Articles at nextgeninsight.net/]

1. Tesla FSD vs. Huawei Autonomous Driving Comparison
2. BYD Electric Vehicle, Global Market Entry Strategy
   

*Source : [자동차 미생 Auto Engineer American Life] 테슬라 급락의 원인은 중국이었다