What's Going On With NIO Shares Tuesday?

NIO Inc. NIO stock is trading lower on Tuesday after BYD Auto announced plans to include self-driving technology in its cars.

The Details: According to CNBC, BYD is working with DeepSeek to develop and launch its “DiPilot” assisted driving system. The technology will be available across its vehicle lineup, including a model priced at 69,800 yuan ($9,555).

The company mentioned that DeepSeek’s artificial intelligence model will be included in at least the more advanced version of the driver-assistance program. Driver assistance programs typically combine software, artificial intelligence and sensors to control the vehicle and reduce the need for human intervention.

BYD’s founder and chairman, Wang Chuanfu, stated during a China-focused launch event live streamed late Monday that advanced smart driving will soon be a standard safety feature, much like seatbelts and airbags.

BYD originally had a different view on integrating self-driving technology. In March 2023, the company told investors that determining liability for autonomous vehicles was challenging, but it also recognized the potential for improved safety in self-driving cars.

Nomura analysts said in a Tuesday note that BYD’s move to include advanced driver-assistance features in a vehicle priced under 70,000 yuan likely makes it the first automaker in China to do so.

NIO shares may be trading lower after BYD’s announcement, as investors may view it as a competitive threat, especially with the technology being included in more affordable models.

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NIO Price Action: At the time of publication, NIO stock is trading 4.50% lower at $4.13, according to data from Benzinga Pro.

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