Chinese electric vehicle (EV) makers are gaining momentum, reporting impressive sales growth in May as they continue to expand their market presence at home and abroad. In contrast, Tesla (TSLA) is facing mounting pressure, with its sales showing signs of weakness amid intensifying competition and shifting consumer preferences. The latest monthly figures highlight a growing divide in momentum between China’s fast-rising EV brands and the American EV giant.
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BYD Delivers Another Record Month Overseas
BYD Co (BYDDF) sold 89,047 NEVs overseas in May, setting a record for the sixth straight month. Notably, BYD’s total new energy vehicle (NEV) sales remained steady in May, rising just 0.63% from April to 382,476 units. Year-on-year, sales climbed 15.3%, with overseas demand driving much of the growth.
Other Chinese carmakers also reported their sales numbers for May. Li Auto (LI) delivered 40,856 vehicles, a 17% increase from a year ago. XPeng (XPEV) sold 33,525 vehicles, jumping 230% from last May. Nio (NIO) delivered 23,231 vehicles, up 13% year-over-year.
On the other hand, Tesla doesn’t break down its sales by region, but industry data reflects a bleak picture. In April, Tesla sold around 58,000 cars from China, including exports — a 6% drop from the same month last year. Even more concerning, retail sales to Chinese customers in the first eight weeks of the second quarter were down about 23% year-over-year. Meanwhile, Tesla’s sales in Europe plunged 50% in April compared to the same month last year.
Investors Shrug Off Tesla’s Sluggish Sales
Despite weak sales in China and Europe, TSLA stock rose more than 20% in May. Investors reacted positively after Elon Musk pledged to concentrate more on his businesses rather than politics. Moreover, Tesla is set to launch its long-awaited autonomous ride-hailing service in Austin, Texas, on June 12th.
Additionally, Tesla’s shares have gained from the company’s stronger ability to handle tariffs compared to other U.S. automakers.
TSLA or BYDDF: Which EV Stock Offers More Upside?
Using the TipRanks Stock Comparison Tool, we have compared TSLA and BYDDF on various parameters. Wall Street analysts rate BYDDF as a Strong Buy, while TSLA has a consensus rating of Hold.
At the same time, TSLA’s share price target of $282.70 indicated a downside of 18.4%. In comparison, BYDDF stock is projected to grow by 36.73% at a price target of $67.75. In addition, investor sentiment toward Tesla remains very negative, largely due to Musk’s political activity. In contrast, BYD holds a very positive sentiment among investors, reflecting stronger confidence in the company’s direction.