Tesla’s stock appears to be on track for a ninth consecutive week of declines. Following a significant drop the previous day, the stock fell an additional 4.8% as of 11:25 a.m. ET. This downward trend is attributed to investor concerns over global sales data.
Recent developments in China have heightened worries regarding Tesla’s electric vehicle (EV) sales. The issues do not stem from CEO Elon Musk or geopolitical factors but rather from competitors making substantial advancements in two crucial areas.
In terms of self-driving and charging technology, most of Tesla’s Chinese rivals lag behind in sales and production volumes, with BYD being a notable exception. BYD surpassed Tesla in delivering more battery electric vehicles in the fourth quarter and has introduced a fast-charging system capable of providing 400 kilometers (approximately 250 miles) of range in just five minutes.
Tesla’s quickest Superchargers require at least 10 minutes to charge an EV. This discrepancy stems from BYD’s top charging speed of 1,000 kilowatts, which is twice that offered by Tesla’s fastest chargers. BYD believes that this fast charging capability, comparable to refueling a gasoline engine, will increase interest in electric vehicles, potentially reducing Tesla’s market share in China.
Additionally, news about competitive pressures came from Zeekr, a brand under Geely Auto, which reportedly offers an advanced driver-assistance system free of charge to Chinese customers. In contrast, Tesla charges a monthly fee for its full self-driving technology in the U.S., unless customers opt to pay upfront during vehicle purchase.
Zeekr’s technology, similar to Tesla’s, allows vehicles to operate almost fully autonomously from one location to another. This complimentary system may attract Chinese customers away from Tesla.
The Chinese market is crucial for Tesla’s sales growth. Tesla is not only facing increased competition in terms of volume but also encountering equal or potentially superior technologies. Such developments could pose further challenges for Tesla’s stock performance.
