Elon Musk isn’t having a good month so far, despite the fact that he didn’t have a good March either.
Since April began, Tesla (TSLA) stock has been sharply trending downward, falling more than 18%. While the tech sector appeared to be rebounding for a few hours on April 8 following the recent selloff, TSLA is already back in the red, as are many of its peers.
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Most companies are facing a highly uncertain future right now as the threat posed by U.S. President Donald Trump’s tariffs continues to spark high economic uncertainty. However, the outlook is particularly grim for Tesla since the automaker recently reported Q1 deliveries and came in below Wall Street’s scaled-back estimates.
A recent announcement out of China, though, suggests that things are about to get much worse for Musk and Tesla.
It’s no secret that consumer sentiment toward Tesla has suffered recently, moving in the same direction as the company’s share price.
Protests have taken place across the U.S. and beyond, while others have resorted to vandalism in protest of Musk and his affiliation with the Department of Government Efficiency (DOGE).
Related: Key Tesla investor makes blunt prediction for the company’s future
With its market share shrinking in both the U.S. and Europe, Tesla needs its Chinese consumer base more than ever if it wants to avoid further losses. Unfortunately, one of its competitors is making significant strides toward overtaking it as the global electric vehicle (EV) leader.
While Tesla stock has been trending downward over the past six months, Chinese automaker BYD (BYDDY) has been making slow but steady progress and is currently in the green. The company has outsold Tesla during the past two quarters, a feat it accomplished without access to the U.S. market.
Now, as Tesla stock continues to decline, BYD has an opportunity to start outshining it in the stock market as well.
Investor Ross Gerber recently implied that he thinks the TSLA can fall even further, predicting a 50% correction. If that happens, TSLA stock will end up trading at close to $100 per share, not much higher than BYD’s current price of $84.
“If BYD’s first-quarter net income comes in at the high end of its guidance, and Tesla earns only a hair less than estimates, BYD will make more money than Tesla,” Barron’s reports. “It will be another feather in the cap of the Chinese car company, and another warning for Musk’s EV maker.”
Musk certainly doesn’t need more warnings that his company’s outlook is bleak right now. Between declining consumer sentiment and plunging share prices, Wall Street analysts, including outspoken bull Daniel Ives, have been reducing their price forecasts for TSLA stock.
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Many experts have predicted that the broader tech sector is headed for darker days, as the tariffs lead to higher prices for consumers and higher operational costs. However, Tesla is facing problems that have nothing to do with tariffs, a factor that is likely to concern investors.
Musk has other reasons to be concerned with BYD’s threat, though. The Chinese automaker hasn’t just done a better job with EVs than Tesla. It recently reported progress regarding its autonomous driving technology, another market Tesla has been trying to corner.
Related: Tesla may have lost the self-driving war in China before it began
In February 2025, Tesla revealed plans to introduce some driver-assistance features to vehicles available in China shortly after BYD began including a similar feature in all its EVs. As TheStreet reported:
“This move from Tesla is likely an attempt to keep pace with the company that has repeatedly outshined it. However, there is a key difference in what they are doing: BYD is adding its assisted driving technology to its cars at no extra cost to consumers. Tesla’s features come with a price tag of roughly $8,800.”
Joe Giranda, director of sales and marketing at CFR Classic, described Tesla’s software as being “less sophisticated and more expensive” than BYD’s. He added that China is a highly price-sensitive market, which is likely to work against Tesla.
BYD’s growth and prospects have made it all too clear that it is Tesla’s strongest rival. As it closes in on Tesla’s lead at the front of the EV race, Musk is running out of time to find new ways to stay ahead.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
The post Elon Musk gets more bad China news appeared first on Yahoo Finance.
