---
title: "BYD Just Added Another Problem to Tesla's Long List"
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/243072938.md"
description: "Tesla's stock has seen significant fluctuations in 2025, dropping 45% in early months before partially recovering. Challenges include a price war in China, declining European sales, and brand backlash against CEO Elon Musk. BYD's recent price cuts of up to 34% on various models may intensify competition in China, where Tesla's sales are already struggling. In Europe, Tesla's registrations fell 49% year-over-year in April. Despite these challenges, Musk's renewed focus on Tesla may help, but investors are advised to be cautious until the company's strategy is clearer."
datetime: "2025-06-04T09:38:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/243072938.md)
  - [en](https://longbridge.com/en/news/243072938.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/243072938.md)
---

> 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/243072938.md) | [English](https://longbridge.com/en/news/243072938.md)


# BYD Just Added Another Problem to Tesla's Long List

**Tesla** (TSLA 0.66%) investors have been on a bit of a roller coaster ride so far in 2025. The technology company's stock was up early in the year before falling as much as 45% in March and April, and then partially recovering so that it now trades down about 15% for the year. It still trades nearly 28% below all-time highs reached in December 2024.

Along the way, there have been constant challenges, including a price war in China, severely declining sales in Europe, and brand backlash related to CEO Elon Musk's involvement in national and international politics.

The coaster ride could potentially turn downhill again this month, thanks to China-based electric vehicle (EV) maker **BYD**'s (BYDDY 3.50%) recent move to slash prices. The action will apply more pressure to a now-challenging Chinese market that Tesla used to dominate. Let's dig into the details.

## What's going on with EVs in China

China's EV market is in the midst of a highly contested battle for market share that includes a brutal price war brought on by multiple factors, including government subsidies, a long list of competing products, and a slowing global economy.

Tesla Model 3 Performance. Source: Tesla.

These dynamics likely prompted BYD's big move late last month to make vehicle price cuts of as much as 34% on 22 electric and plug-in hybrid vehicle models (effective through the end of June). The announced cuts came after BYD reported its slowest year-over-year sales growth (up 21% in April) in more than four years. BYD's price cuts are likely to force its competitors to enlarge discounts to avoid giving up sales and market share. According to Bloomberg Intelligence, the average vehicle discount in China is around 15% so far this year, but analysts warn it could get even worse during the second half of the year.

Even one of Tesla's biggest supporters, **Morgan Stanley**'s Adam Jonas, expressed skepticism that Tesla could catch the competition in China. Jonas suggested Tesla's future is now even more tied to its upcoming launch of a robotaxi service on June 12. A report in the industry website _InsideEVs_ quoted the Morgan Stanley analysis, which summed things up by saying, "We recommend investors have a look at the pictures and specs of the Xiaomi YU7, which looks like a **Ferrari** or Aston Martin SUV at the price of a **Toyota** Camry. Then ask yourself if Tesla would be better off introducing more steering-wheel-having EVs."

BYD's price cuts add to Tesla's problems overseas. The eventuality of Chinese automakers setting sail for the U.S. market will increase EV competition significantly and exacerbate the issue.

## Tesla's got a European problem, too

Tesla's challenges extend beyond the brutal price war in China. The company has been watching sales plunge in Europe, where the company also once dominated. Tesla's new car registrations in Europe plunged to 7,261 units in April, a decline of 49% over the previous April, according to the European Automobile Manufacturers Association. Through April, Tesla sold roughly 61,000 vehicles in Europe, a 39% decline compared to the same period last year.

The automaker's results overseas are certainly weighing on its global sales, which were down 13% during the first quarter -- the worst quarterly decline in the company's history.

## The silver lining

Tesla has definitely faced adversity in 2025, but there is a little bit of good news for investors.

In a recent post on X (formerly Twitter), Musk said he's back to spending 24/7 at work and sleeping in Tesla's conference, server, or factory rooms. Hopefully, with Musk returning his focus to the automotive business, the brand backlash related to his extracurricular activities will eventually blow over. For Tesla, that can't come soon enough.

Despite the potential buying opportunity here while the stock is down -- and if you truly believe in Tesla long-term, it is an opportunity -- it might be wise to watch Tesla from the sidelines for the time being. If you're already a shareholder, there's no reason to sell. But know that, right now, the company seems to be facing an identity crisis: is it a robotaxi company, a car manufacturer, or a developer of AI and robotics?

It might be wise to wait to invest in Tesla until its strategy forward is more certain.

### 相關股票

- [BYD COMPANY (01211.HK)](https://longbridge.com/zh-HK/quote/01211.HK.md)
- [BYD (002594.CN)](https://longbridge.com/zh-HK/quote/002594.CN.md)
- [BYD Company (BYDDY.US)](https://longbridge.com/zh-HK/quote/BYDDY.US.md)
- [BYD Company Limited (BYDDF.US)](https://longbridge.com/zh-HK/quote/BYDDF.US.md)

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