Tesla, Inc. (TSLA) Is Facing Tough Competition in China

Stating that Chinese EV maker BYD (BYDDY,BYDDF) “had an incredible year” and continues to innovate, Bloomberg’s Craig Trudell warned earlier this week that Tesla, Inc. (TSLA) is facing very strong competition in China.

A Tough Challenge From BYD

BYD’s  2024 revenue came in above that of Tesla, and the Chinese automaker is making “tangible progress” on its products while putting up impressive financial results, Trudell reported. BYD recently announced that it had developed technology which will enable 400 kilometers of range to be added in just five minutes, he noted.

“This is the sort of innovation that we might have expected to see from Tesla years ago,” the reporter added.

Meanwhile, another one of  TSLA’s China-based competitors, Xiaomi recently raised $5.5 billion to fund its EV business, Trudell noted.

The Recent Price Action of TSLA and BYDDY

In the last month, Tesla, Inc. (TSLA) is down 6.5%, while it has tumbled 41% in the last three months.

In the last month, BYDDY has advanced 2%, while it has jumped 45% in the last three months.

While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TSLA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of BYDDY but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey.