BYD's new fast charging technology weighs on Tesla's stock 📉

BYD has unveiled a new fast charging technology for electric cars, which the company claims will allow electric vehicles to be charged at a speed comparable to the time needed to refuel gasoline cars. The company asserts that the new "Super e-Platform" system will enable cars to travel 470 km after just 5 minutes of charging. This technology could fundamentally change consumer attitudes towards electric cars. One of the main criticisms of these types of vehicles is still the lower range compared to gasoline cars, coupled with longer charging times.

The new BYD technology would allow the company to take the lead in terms of the greatest range per minute of charging. Source: Bloomberg Finance L.P.

The presentation of the new technology has lifted BYD's stock to new highs. The company's market capitalization currently stands at $159.84 billion, surpassing the combined market capitalization of Ford, Volkswagen, and BMW.

Comparison of BYD's market capitalization and the combined market capitalization of Ford, Volkswagen, and BMW (in billion $). Source: XTB Research, Bloomberg Finance L.P.

At the same time, BYD remains one of Tesla's leading competitors in the global market. In response to reports of BYD's successes, and amid deteriorating sentiment towards the American company, the giant's shares are down more than 3% in pre-market trading, approaching the March lows again. This area represents the lowest value of Tesla's stock since October last year.

Tesla's stock is falling in pre-market trading. Source: xStation