Tesla (TSLA) stock took another hit as China-made EV sales fell 11.5% year-over-year in March. This decline follows a weak performance in Europe, where Tesla’s auto sales in France plummeted by 36.8% last month. Meanwhile, the drop is also fueled by broader market uncertainty ahead of Trump’s “Liberation Day,” which may introduce a new wave of tariffs on various goods and countries. TSLA stock declined by 2.6% in pre-market trading on Wednesday.
Tesla’s Sales Decline While BYD Gains
According to the China Passenger Car Association (CPCA), Tesla sold 78,828 vehicles in March. On the other hand, Tesla’s Chinese competitor BYD (BYDDF) saw a 23.1% year-over-year increase in passenger vehicle sales last month, reaching 371,419 units. BYD’s numbers were mainly driven by strong demand for Ocean and Dynasty EVs and plug-in hybrids.
According to Counterpoint Research, BYD is on track to surpass Tesla as the world’s leading EV seller this year, holding a 15.7% market share compared to Tesla’s 15.3%.
Tesla Model Y Triumphs in Sales Battle
To counter rising competition, Tesla introduced a refreshed Model Y in January. The company started delivering the Model Y in late February in China and last month in the U.S. and Europe. The update has helped boost demand, as many potential buyers had been holding off for the new version.
While sales declined year-over-year, the company saw a strong rebound from the previous month. Notably, the Model Y emerged as the best-selling vehicle in China in March, as highlighted by Musk in a post on X. Tesla recorded 43,370 Model Y sales during the month.
Overall, Tesla investors are bracing for the release of its Q1 delivery figures today. A potential drop in vehicle deliveries is expected, driven by slowing demand, fierce competition, and growing controversy surrounding Musk’s political affiliations. Wall Street estimates Tesla delivered around 373,000 vehicles in Q1, a 3.6% drop from last year’s 386,810, per Visible Alpha’s latest forecasts.
Is Tesla a Good Stock to Buy Right Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 11 Holds, and 12 Sells assigned in the last three months. The average price target for Tesla shares is $315.0, suggesting a potential upside of 17.34% from the current level.
