Many automakers are pouring billions of dollars into developing self-driving cars or risk falling behind the innovation curve. Toyota, SAIC, and others' recent additional financing of Momenta should help them compete with superstars like Tesla.

Tesla, Inc. has long been rumored to release a budget model of its EV at the sub-$25,000 price point. With the project yet to come to fruition, rival EV makers are pushing ahead in this cost-competitive segment in China.