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].

Delivery Results - NIO delivered 23,900 vehicles in April 2025, reflecting a 53% year-over-year growth, with cumulative deliveries reaching 737,558 units as of April 30, 2025 [2] - XPeng reported 35,045 smart EV deliveries in April 2025, marking a 273% year-over-year increase, and cumulative deliveries for the first four months of 2025 totaled 129,053 units, up 313% compared to the same period last year [3] - LI Auto delivered 33,939 vehicles in April 2025, representing a 31.6% year-over-year growth, with total deliveries for the first four months of 2025 amounting to 1,260,675 units [5] Product Launches and Innovations - NIO's new small smart high-end electric car brand, Firefly, began deliveries in late April 2025, launched on April 19, 2025 [2] - XPeng launched its ADAS insurance service in China on April 28, 2025, providing additional coverage for its models when the NGP system is in operation [4] - LI Auto introduced new models including Li MEGA Home, Li MEGA Ultra, and Li L6 [5] Market Performance - XPeng's shares have increased by 106.1% over the past year, while NIO and LI Auto's shares have decreased by 29.4% and 12.3%, respectively [6] - NIO and XPeng currently hold a Zacks Rank of 3 (Hold), while LI Auto has a Zacks Rank of 4 (Sell) [8]

Core Viewpoint - The Chinese new energy vehicle market is experiencing a significant shift in 2025, with pure electric vehicles regaining market share while range-extended electric vehicles show signs of fatigue [2][4][7]. Summary by Sections Market Performance - In 2024, range-extended and plug-in hybrid vehicles were the main growth drivers in the Chinese new energy vehicle market, with wholesale sales of plug-in hybrids reaching 3.91 million units, a year-on-year increase of 84.8%, and range-extended vehicles at 1.179 million units, up 70.9% [2][3]. - Pure electric vehicle wholesale sales in 2024 totaled 7.095 million units, with a year-on-year growth rate of only 15.9%, leading to a market share drop to 58% [3]. 2025 Trends - In early 2025, the market structure began to shift significantly, with pure electric vehicle sales showing a notable recovery. January, February, and March saw year-on-year growth rates of 23.3%, 69.6%, and 35.2%, respectively [4]. - Conversely, range-extended vehicle growth slowed, with January showing a decline of 11.3%, and February and March growth rates of 7.4% and 26.0%, respectively [4]. - The share of pure electric vehicles in March 2025 rose to 62.8%, surpassing the 60% mark again [4]. Retail Market Insights - In the first quarter of 2025, pure electric vehicle retail sales grew by 45.2%, leading among all new energy vehicle types, while plug-in hybrids grew by 33.7%, and range-extended vehicles saw minimal growth of only 0.7% [4]. Market Structure Characteristics - The recovery of the pure electric market exhibits a "barbell" structure, driven by both low-end entry-level and high-end segments. The A00 class (micro) electric vehicles saw a remarkable year-on-year growth of 87% in March, increasing their share to 19% [5]. - New energy vehicle brands, particularly in the high-end segment, contributed significantly to growth, with new force brands capturing a market share of 17.1%, up 3 percentage points year-on-year [5]. Competitive Landscape - Despite lower absolute sales in the high-end segment compared to entry-level markets, the growth trend and brand image enhancement are significant. The average promotional discount for luxury electric vehicles reached 26.1% by March [6]. - The range-extended segment faces challenges, exemplified by the significant decline in sales for key players like Seres, which saw a 42.47% drop in the first quarter [6]. - The overall high growth in the new energy market in early 2025 is attributed to a shift in policy timing, with the stimulus window expected to be from February to December, contrasting with the previous year's concentrated efforts in the latter half [6].