Chinese electric vehicle makers posted another strong month of growth in May as Tesla sales continue to flag. Investors, however, haven’t been worried about Tesla’s car sales lately.
Several Chinese carmakers report monthly sales on the first day of a new month. For May, Li Auto delivered 40,856 vehicles, up 17% from a year ago. XPeng delivered 33,525 vehicles in May, up 230% from last year. NIO delivered 23,231 vehicles in May, up 13%.
Combined, the trio delivered 97,612 vehicles, up almost 50% from a year ago. So far this year, the three EV makers delivered 419,462 through May, up 69% from the same time in 2024.
BYD, China’s largest EV maker, delivered 376,930 passenger vehicles, up 14% from a year ago, including 204,369 battery-electric models, or BEVs. (BYD also makes plug-in hybrid vehicles.) BYD’s BEV sales grew 40% from a year ago.
BYD’s BEV sales are up 41% this year through May.
Tesla doesn’t report regional sales, but Wall Street tracks data from industry providers. Its April sales from China, including exports, amounted to about 58,000 cars, down 6% from a year ago. What’s more, retail sales to Chinese customers in the first eight weeks of the second quarter were down about 23% from a year ago.
Wall Street believes that strained trade relations between the U.S. and China have led Chinese car buyers to avoid American brands. It comes at an inopportune time for Tesla, which sold about 1.8 million cars in 2024, down a little from 2023. It isn’t expected to grow sales in 2025 either, according to Wall Street estimates. That’s no growth despite a healthy Chinese EV market.
Investors, however, don’t appear all that concerned with Tesla’s recent sales results. Coming into Monday trading, Tesla stock was up almost 100% over the past 12 months. Investors believe AI-trained self-driving cars can unlock a new wave of growth for Elon Musk’s car company.
Tesla plans to start a robotaxi business in June, just a few days away.
Higher sales have helped Chinese EV maker shares. Coming into Monday trading, BYD shares were up about 70% over the past 12 months. Li and XPeng shares were up 39% and 138%, respectively. NIO stock hasn’t kept up, dropping 34% over the past 12 months.
Write to Al Root at allen.root@dowjones.com
