Electric vehicle maker Tesla’s (TSLA) shares traded in the red during pre-market hours on Tuesday morning as numbers from its market activities in August continue to trickle in. Tesla’s stock was down by 1.67% as of 8:02 a.m. EDT.
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This is even as the latest data from the China Passenger Car Association, seen by Reuters, shows that the American company’s sales of its China-made Model 3 and Y vehicles jumped by 22.6% from July to August 2025. However, the firm’s sales tumbled 4% from the same period last year.
Last month, Tesla delivered 83,197 units of these cars across markets, including in Europe. The American manufacturer also appears set to double down on sales of these models for next month: the EV maker just slashed by 3.7% the price of the new, long-range, rear-wheel-drive variant of the Model 3 sold in China.
The discount brought down the price to 259,500 yuan ($36,391). The goal is to secure a win in China’s cutthroat EV market price war.
However, it is not a particularly great time, either, for rival BYD (BYDDY) (BYDDF) at its home base. The Chinese EV producer’s sales declined further in August for the fourth consecutive month.
This trailed BYD’s disappointing Q2 2025 results released last Friday. The figures showed its net profit tanked for the first time in over three years.
Specifically, the Chinese producer’s net income tumbled by 30% to $895 million, rattling the Shenzhen-based company’s stock market performance this week. The intense competition for market share among Chinese EV producers appears to have taken its toll on the firm.
Tesla’s Sales Rout in Europe Deepens
The numbers from China largely echoed Tesla’s market performance in Europe last month. Already, figures show the American EV producer’s car registrations plummeted by over 47% year-over-year in August in France, despite a 2.2% boost in the French car market.
Similar performances were seen in Scandinavian countries Sweden and Denmark where Tesla car registrations tanked by 84% and 42%, respectively. In the former, EV sales came in flat, despite the overall market jumping by 6%. Similarly, registrations tumbled by 50% in the Dutch market.
However, Tesla was able to pull its weight in Spain and Norway. In the Southern European country, sales skyrocketed by 161% year-over-year, aided by the Spanish government’s EV subsidies of up to €7,000. Up north, sales also climbed by over 21%. However, BYD’s performance in Norway buried Tesla’s, with the Chinese EV maker’s car registrations soaring 218%.
Where Will Tesla Stock Be in Five Years?
Turning to Wall Street, Piper Sandler (PIPR) still stands behind its Buy rating on Tesla’s stock. The investment bank’s analyst, Alexander Potter, maintained his TSLA price target of $400 after touring the company’s Nevada Gigafactory last week.
However, on TipRanks, TSLA has a Hold consensus rating based on 35 Wall Street analysts’ assessments. This breaks down to 13 Buy, 14 Hold and eight Sell recommendations.
The average TSLA price target by these analysts in the last three months is $306.42. This is an 8.22% downside risk from the closing price of $333.87 as of Friday’s regular trading hours in the U.S.
