Chinese EV makers reported strong May sales while Tesla's declined, but investors remain unconcerned about Tesla's performance, according to Barron's. XPeng was up 230%, Li Auto up 17%, and NIO up 13%, reflecting continued momentum in the country’s electric vehicle market. Combined deliveries from the three EV makers rose nearly 50% in May and are up 69% year-to-date compared to the same period in 2024. Industry data shows Tesla’s China sales fell 6% in April, with retail sales down 23% in the first eight weeks of the second quarter compared to a year ago. Wall Street believes rising U.S.-China trade tensions are prompting Chinese consumers to shy away from American car brands. This poses a challenge for Tesla, which saw a slight sales decline in 2024 and is not expected to grow in 2025 despite strong demand in China’s EV market. Investors remain optimistic about Tesla despite recent sales declines, with the stock nearly doubling over the past year. They see potential in AI-driven self-driving technology as a future growth driver. Tesla aims to launch its robotaxi business in early June, fueling further investor enthusiasm.
