Tesla’s (NASDAQ:TSLA) EV sales in China continued to decline in May, according to data from the China Passenger Car Association (CPCA). This data showed that the EV major’s sales of its China-made EVs dropped 6.6% year-over-year to 72,573 units in May. In April, the company experienced an 18% year-over-year drop in EV sales, marking a reversal from TSLA’s sales increasing by 0.2% in March.
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The company’s China-made Model 3 and Model Y deliveries rose 16.7% month-over-month from April. In comparison, Tesla’s Chinese rival BYD (OTC:BYDDY) sold 330,488 passenger vehicles in May, an increase of 38.2% year-over-year.
Tesla in China
Tesla has reduced its production of the Model Y by a double-digit percentage at its Shanghai plant since March, attributed to rising competition from local EV manufacturers like BYD, NIO (NYSE:NIO), and Li Auto (NASDAQ:LI). These Chinese EV giants are offering car models priced more competitively than Tesla’s cheapest model, the Model 3.
As a result, Tesla’s revenues from China accounted for over 20% of its total revenues in the first quarter, compared to around 21% in the same period last year.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on nine Buys, 14 Holds, and nine Sells. Year-to-date, TSLA has declined by more than 25%, and the average TSLA price target of $174.60 implies a downside potential of 0.96% from current levels.
