Tesla (TSLA) has scored a rare and much-needed victory in China, earning bragging rights over its biggest rival in the process. While Elon Musk‘s automaker has faced a difficult year marked by underwhelming sales in China and a collapse in Europe, November data shows things are finally looking up.
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According to China’s Passenger Car Association, Tesla’s sales rose by nearly 10% in November compared to the same month last year. This surge comes as its arch-rival, the Chinese EV giant BYD, unexpectedly hit speed bumps, recording its third straight month of sales declines.
Tesla’s Sales Rebound after Difficult Year
The 9.9% sales increase in China is an important win for Tesla. The company is on track to see its overall global sales decline for the second consecutive year, battling intense competition in the EV-friendly Chinese market and a significant sales collapse in Europe.
The rebound suggests that Tesla’s strategy, which has included aggressive pricing and product updates in China, is starting to gain traction. The Shanghai Gigafactory, which produces cars for both the Chinese and export markets, is central to this crucial sales recovery.
Chinese Rival BYD Slumps for Third Month
The bright spot for Tesla is the unexpected stumbling of its chief competitor, BYD (BYDDF). The Chinese automaker, which has rapidly become one of the world’s largest carmakers, has recorded three straight months of sales declines in its home market.
BYD sold just over 480,000 EVs and hybrids in November, a high total for the year, but still approximately 5.3% less than it sold during the same period in 2024. This slump is attributed to a renewed price war in China’s hyper-competitive EV market and a government crackdown on aggressive discounting.
Global Race Still Favors BYD Expansion
Despite its domestic issues, BYD is still on course to take Tesla’s crown as the world’s largest seller of battery EVs this year. The Chinese giant is rapidly expanding and taking market share from Tesla outside of China.
BYD’s overseas sales hit a record 131,935 in November alone. The company is capitalizing on Tesla’s issues in Europe, where BYD outsold its U.S. rival by more than two-to-one in October, showing that the global race is far from over.
Investors can compare both Tesla and BYD’s stocks side-by-side based on various financial metrics and analyst ratings on the TipRanks Stocks Comparison Tool. Click on the image below to find out more.
