In 2025, Tesla’s stock has faced significant volatility, dropping as much as 45% in March and April before partially recovering, currently down about 15% year-to-date. The company’s challenges include a brutal price war in China initiated by BYD, which recently announced vehicle price cuts of up to 34% on 22 models. Tesla’s sales in Europe also declined sharply, with new registrations falling 49% to 7,261 units in April and a 39% decrease in total sales through April compared to the previous year.
The average vehicle discount in China’s EV market is currently around 15%, with analysts anticipating worsening conditions in the second half of the year. Tesla’s global sales were down 13% in Q1 2025, marking the worst quarterly decline in its history, raising concerns about its competitive position, particularly in China and Europe. Tesla’s upcoming robotaxi service launch on June 12 is seen as a critical factor for its future prospects.
