No other major car manufacturer has dared to take this step so far. In the future, BYD will pay for accident damage caused by its driving assistance system.
On May 28, 2026, BYD announced a promise at its Intelligent Strategy Conference in Shenzhen that made the industry sit up and take notice: The company assumes full financial responsibility for accidents caused by the urban assistance system “God’s Eye” – provided the driver follows traffic rules. The question for investors is what is behind this step: genuine confidence in their own technology or tactical maneuvering in a market under pressure.
The promise in detail
The liability agreement applies to God’s Eye A and B, as reported by elektrec, among others. It covers repairs to your own vehicle, damage to third parties, personal injuries and legal costs – and does not specify an upper limit for payouts. New car customers are protected from the moment the vehicle is handed over; Existing customers will gain access after the OTA update to God’s Eye 5.0. BYD describes this as the world’s first double guarantee of this kind – a conscious differentiation from Tesla, which has never assumed comparable liability for its FSD system.
Mass market as a target
BYD is explicitly positioning the offer in the mass market: vehicles priced below 150,000 yuan can be upgraded to God’s Eye B at an additional cost of around 12,000 yuan, the equivalent of around $1,770, according to Börse Express. The calculation is well known: After the parking guarantee from July 2025, the usage rate of the feature in question rose from 21 to 93 percent. BYD now wants to apply the same logic to urban driving.
Technology meets difficult market conditions
The liability promise comes at a time when BYD is under internal pressure. In the first quarter of 2026, net profit shrank to 4.08 billion yuan – a decline of over 50 percent from the same period last year. The main driver was a strong yuan, which caused BYD unexpected currency losses. The operational momentum has hardly been reflected on the stock market so far: the H share is currently trading at around 90 Hong Kong dollars, around 37 percent below the 52-week high of 143.60 Hong Kong dollars. Immediately after the event on May 28, the shares closed 1.1 percent higher at 91.30 Hong Kong dollars – a muted reaction given the scope of the announcement.
Next stress test
How reliable the liability promise is will become apparent in everyday life: BYD’s God’s Eye fleet already generates more than 150 million kilometers of driving data every day. The next tough test for investors is the general meeting on June 9, 2026, at which management is expected to comment on profit development and pricing strategy.
On Thursday, BYD’s shares in Hong Kong temporarily fell by 1.66 percent to 91.70 Hong Kong dollars.
Evelyn Schmal, Martina Köhler, editorial team finanzen.net
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