Tesla's China Sales Slump Again: Is Investor Patience Wearing Thin?

Core Insights - Tesla's sales in China are declining, with April sales at 58,459 vehicles, a nearly 6% decrease year-over-year and a 26% drop from March [1]. - In the first four months of 2025, Tesla's China sales have fallen over 18% year-over-year to 231,213 units [1]. - Local competitors like NIO, Li Auto, and XPeng are experiencing significant growth, contrasting with Tesla's struggles [5][6]. Sales Performance - Tesla's April sales in China were 58,459 vehicles, down nearly 6% from the previous year and down 26% from March [1]. - NIO delivered 23,900 vehicles in April, reflecting a 53% year-over-year increase [5]. - XPeng's deliveries reached 35,045 in April, marking a 273% year-over-year increase [6]. - Li Auto delivered 33,939 vehicles in April, up 31.6% year-over-year [6]. Market Position and Competition - Tesla is facing challenges from an aging product lineup and increasing competition, leading to weak delivery numbers across key markets [2][3]. - The recent refresh of the Model Y did not generate significant excitement, and public perception of Tesla has been negatively impacted by CEO Elon Musk's controversies [2]. - Local EV makers are gaining ground, with NIO, Li Auto, and XPeng all reporting strong sales growth [5][6]. Financial Outlook - Tesla's stock has lost over 30% year-to-date, and the company has not reaffirmed its 2025 delivery guidance due to ongoing global tariff uncertainties and weak performance in China [3][4][7]. - The Zacks Consensus Estimate for Tesla's 2025 earnings suggests a 22% year-over-year decline [11]. - Tesla trades at a forward price-to-sales ratio of 8.41, significantly higher than the industry average, and carries a Value Score of F [9].