Why Tesla (TSLA) Stock Is Sinking Today

Tesla (TSLA) is retreating 5% after it was reported yesterday that its sales in China, combined with the sales of EVs that it exports to other markets from China, had tumbled 11.5% last month versus the same period a year earlier. Moreover, one of its top China-based rivals stated this week that it would start providing highly advanced driving assistance systems on all of its models.

Tesla’s China Sales Slump

In January, the number of EVs that TSLA either sold in China or exported from the country fell 11.5% versus January 2024. However, the comparison between last month and January 2024 was impacted by the fact that four days of the Chinese New Year holiday this year occurred in January, while last year the holiday fell entirely in February. Still, a number of China-based EV makers, including BYD (BYDDY) and Xpeng (XPEV) did manage to register year-over-year sales increases in January.

BYD’s Initiative

BYD announced yesterday that it plans to add highly advanced ADAS offerings to all of its vehicles, including its cheapest models. Among the features that will be offered are “remote parking via smartphones and autonomous overtaking on roads.,” the Financial Times noted.

BYD sells one vehicle, the Seagull hatchback, for less than $10,000.

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