Worldwide sales of fully electric vehicles and plug-in hybrid automobiles grew 15% in August from a year earlier, marking the slowest rate of increase since January, according to market research firm Rho Motion.
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China’s electric vehicle sales grew only 6% in August after averaging 36% year-over-year growth during each month in the first half of this year. China is the world’s biggest car market and accounts for more than half of all electric vehicle sales in the world today.
The latest data are a blow to automakers that either focus exclusively on electric vehicles or have bet their future growth on battery-powered automobiles. These include companies ranging from America’s Tesla (TSLA) to Japan’s Toyota Motor Corp. (TM) and China’s Nio (NIO).
China Weakness
A slowdown in the Chinese market is having an outsized impact on global electric vehicle sales. China’s overall vehicle sales, including gas-powered cars, saw its weakest sales in seven months during August. China’s BYD (BYDDF), the world’s largest EV maker, recently cut its 2025 global sales target by 16%.
Partially offsetting the slump in China was strong demand in the U.S. during August as consumers tried to get ahead of expiring tax credits. Sales were also strong in Europe. In all, global sales of battery-electric vehicles and plug-in hybrids rose to 1.7 million units in August, according to Rho Motion. The 15% year-over-year growth in August was down from 21% annual growth in July.
Is TSLA Stock a Buy?
Tesla stock has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 14 Buy, 13 Hold, and seven Sell recommendations issued in the last three months. The average TSLA price target of $313.62 implies 19.25% downside from current levels.
