Car sales in China, the world’s largest auto market, fell for the second consecutive month in November, according to data from the China Passenger Car Association. However, American electric vehicle (EV) producer Tesla (TSLA) bucked the trend, with its sales climbing 9.9% in November while those of its chief Chinese competitor BYD (BYDDY) declined.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
According to the association, car sales last month totaled 2.24 million. Customer demand weakened by 8.5% from a year ago as earlier enthusiasm to snap up vehicles before the Chinese government’s year-end subsidy rollback faded.
Tesla Rises as Chinese Car Market Shrinks
Electric vehicles and plug-in hybrids accounted for about 58.9% of total car sales during the month — a record number — the data showed. However, BYD’s sales of EVs and hybrids fell by 5.3% year-over-year, its third consecutive sales decline.
The Chinese EV giant sold over 480,000 of both car types in November, which is, nonetheless, one of its strongest monthly tallies so far in 2025.
Tesla’s other Chinese EV rivals, Li Auto (LI), NIO (NIO), and Xpeng (XPEV), grew combined deliveries by 6% year-over-year in November to 106,184 vehicles, but this marked their slowest monthly growth rate so far this year.
Tesla’s outing in November marks a change from its October performance, when China sales hit a three-year low, leading its market share to fall by 3.2%.
Tesla Aims for Recovery in Europe
However, in Europe, Tesla’s sales remain volatile, even as BYD continues to gain market traction in the region. In November, the Texas-based company’s sales across key European markets France, Denmark, and Sweden, plunged by more than 50%.
On Friday, Tesla launched a cheaper standard variant of its popular Model 3 electric sedan in Europe, likely to address falling sales. The move is the latest after Tesla in October introduced a “standard” and more affordable version of its Model Y premium sport utility vehicle (SUV), and earlier in August floated the upgraded version of the Model Y SUV.
However, it has to overcome some key obstacles, including the high rate of Tesla brand avoidance over CEO Elon Musk’s recent political foray.
Is Tesla a Buy Stock?
Analysts on Wall Street remain wary of Tesla’s shares and continue to maintain a Hold consensus rating on the stock. This is based on 12 Buys, 12 Holds, and 10 Sells issued by 34 analysts over the past three months.
Moreover, at $383.54, the average TSLA price target indicates approximately 16% downside risk.
