The Tesla brand is in a maelstrom these days, buffeted by the growing political role of its CEO - which has only served to introduce partisanship into Tesla's sales calculus - and intense competition out of China.
Tesla is trying to boost its anemic sales by introducing refreshed versions of its Model 3 and Y. Moreover, later this year, the EV giant is expected to debut a more affordable hatchback, dubbed Model Q.
Tesla $TSLA registered 12,400 new vehicles in China last week—almost twice as many as the week before—boosted by the refreshed Model Y launch. The updated Model Y saw 6,600 deliveries in its first week of sales in China. pic.twitter.com/e0s8y8x68P
— Wall St Engine (@wallstengine) March 4, 2025
Tesla registered 12,400 new vehicles in China last week, nearly doubling its sales volume from the prior week. Of course, the newly introduced, refreshed version of the Model Y played an important role in boosting Tesla's sales momentum, to the tune of 6,600 deliveries.
$TSLA China reported 12.4K insured registrations for the week of Feb 24-Mar 2.
After nine weeks, 1Q is -10.1% YoY and -41.6% QoQ. This was the highest week of the quarter so far, driven by the start of refreshed Model Y deliveries in China.Source: @piloly pic.twitter.com/nO6G5HeKHB
— Gary Black (@garyblack00) March 4, 2025
Nonetheless, Tesla still has to cover a lot of ground. Consider the fact that, with 9 weeks under the belt for the ongoing quarter, the company's sales in China are still running in the red by 10.1 percent on a year-over-year basis, and down a whopping 41.6 percent on a sequential basis.
There is hope yet for the EV giant, however. Consider the fact that last week constituted Tesla's brightest 7-day period of the ongoing quarter, courtesy of the refreshed Model Y.
Tesla $TSLA sold 30,688 China-made EVs in February, down 49.2% YoY and 51.5% from January, per CPCA data. Meanwhile, BYD delivered 318,233 units, up 161.4% YoY, as its Dynasty & Ocean series continue to dominate the market.
Image credit: @CnEVPost pic.twitter.com/WHqbrrEhNj
— Wall St Engine (@wallstengine) March 4, 2025
Do note that Elon Musk's company sold 30,688 China-made EVs in February 2025, constituting a year-over-year decline of 49.2 percent and a sequential decrease of 51.5 percent.
Given the plethora of challenges that still exist for Tesla, it is not a surprise that BofA analyst John Murphy has now slashed his price target for the EV giant's shares by 22 percent to $380 per share from an earlier peg at $490.
Tesla continues to contend with favorability issues in the US and the EU, which are playing an important role in dampening its overall sales momentum.
Stifel recently publicized the results of its proprietary survey, which found that the Democrats' view on Tesla has plunged to "all-time lows," while Republicans' willingness to buy a Tesla has "risen sharply."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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