Tesla Stock: Shares Plunge 15% As Chinese Rivals Gain

Tesla experienced its most severe market decline since 2020 on Monday, with shares plummeting more than 15% in a single trading day. This dramatic drop has effectively eliminated all gains the electric vehicle manufacturer had accumulated since the U.S. presidential election. The steep decline comes despite Tesla reporting quarterly figures in late January that showed profit growth, albeit below market expectations. Since the beginning of the year, Tesla's stock has shed approximately 44%, making it one of the worst performers among the previously celebrated "Magnificent Seven" technology companies. Several analysts have subsequently downgraded their forecasts for the EV maker, placing additional pressure on the share price. Growing criticism regarding CEO Elon Musk's dual role has further intensified the already tense situation.

Chinese Competitors Accelerate

While Tesla struggles, Chinese electric vehicle manufacturers are demonstrating remarkable resilience. Companies like Nio and XPeng posted significant gains on the Hong Kong stock exchange Tuesday, with Nio closing up 9.8% and XPeng rising 9.1%. Other Chinese automakers including Zhejiang Leapmotor Technology and Great Wall Motor also recorded positive performance. This upward trend is supported by robust sales figures in the Chinese market, where new energy vehicle sales, including electric cars and plug-in hybrids, surged 80% to 686,000 units in February. The contrast between Tesla's challenges and the rise of Asian newcomers is increasingly capturing investor attention, potentially signaling a shift in investment strategy within the electric mobility sector.