Tesla (TSLA) saw its China sales fall to a three-year low in October. More precisely, the EV company sold just 26,006 vehicles last month, which led to its market share falling from 8.7% in September to 3.2%. This steep drop is due to intense competition from local rivals like Nio (NIO) and Li Auto (LI), along with an ongoing price war and a weaker economy. One of Tesla’s newest competitors in the premium EV space is Xiaomi (XIACF), which just entered the car market.
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Interestingly, its YU7 SUV and SU7 sedan hit record sales in October, despite safety concerns from recent accidents. Xiaomi’s EV division even turned a profit in the third quarter after selling nearly 109,000 vehicles compared to Tesla’s 170,000. Leapmotor (LPMPF), another local player, is also gaining ground. Founded in 2015, its C10 SUV costs about half as much as a Model Y and benefits from in-house production. Meanwhile, Geely (GELYF) is leading China’s EV sales with the budget-friendly Geome Xingyuan hatchback that’s priced under $10,000.
Though it doesn’t directly compete with Tesla, it shows that Chinese buyers are shifting toward affordability. In addition, traditional carmakers like Geely and tech firms like Huawei are forming partnerships. Indeed, Huawei now collaborates with brands like Seres, Chery, and Beijing Auto. Nevertheless, Tesla’s Model Y still ranks sixth in sales, and Elon Musk expects Chinese approval for Full Self-Driving by early 2026. However, experts say that Tesla needs to update its models in order to stay competitive.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $383.37 per share implies 7.7% downside risk.
