Tesla Stock Is Trading Lower Today: What's Going On?

Shares of Tesla Inc. TSLA are trading lower Monday as the company faces growing pressure from Chinese electric vehicle competitors, which posted strong delivery numbers for May.

What To Know: Tesla’s rivals, BYD, Li Auto, Nio and Xpeng, saw sales growth in China last month. Li Auto reported a 17% month-over-month increase, delivering 40,856 vehicles. Nio followed with over 33,500 deliveries and Xpeng delivered more than 23,000 units. BYD led the group with 204,369 battery electric vehicle deliveries in May, representing a 40% year-over-year increase.

Meanwhile Tesla has battled declining sales in the region after reporting roughly 58,000 vehicle sales in China in April, including exports. The company’s sales in the first eight weeks of second quarter have declined 23% year-over-year, suggesting continued softness in its second-largest market. Despite improving registration numbers in May — over 11,000 units registered in China for two consecutive weeks — the broader trend remains negative.

Tesla’s challenges extend beyond China. In Europe, the company posted a steep 49% drop in sales for April. For the first time, BYD surpassed Tesla in the region, signaling a significant shift in EV market dynamics.

Investors are watching closely as Tesla approaches its June 12 Robotaxi unveiling in Austin, a potential catalyst for the EV stock.

Tesla CEO Elon Musk said last month that all that matters for the company long term are autonomy and the company's Optimus bots, which are expected to “overwhelmingly dominate the future financial success of the company.”

Analysts remain cautiously optimistic given Tesla’s advancements in Full Self-Driving (FSD) technology. However, questions linger about the company’s ability to maintain competitive footing amid rising global competition and aggressive pricing strategies, especially in China.

Despite the concerns about sales, Tesla shares have climbed about 20% over the past month as Musk’s time as a special government employee comes to a close. Musk joined the Trump administration earlier this year to take a lead role at the Department of Government Efficiency, or DOGE. He announced that he was officially stepping away from the position last week.

TSLA Price Action: Tesla shares were down 2.59% at $337.47 at the time of publication Monday, according to Benzinga Pro.

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