Here is my opinion before the details. I think Tesla (TSLA) stock still belongs in a long-term investor’s portfolio, but only for those who can stomach a high price-earnings multiple.
Rising sales in China and the global launch of its driving software reinforce the bullish stance. However, TSLA stock is trading at a severe valuation. So, I see Tesla as a name to exploit weaknesses.
More Barchart news
I’ve followed Tesla’s slow shift from an automaker to a software and robotics story for years. May’s China numbers are the kind of data that keeps the story alive.
Rising sales in China indicate recovery across EV market
According to a CNBC According to the report, sales of Tesla cars made in China increased by 40% in May. Preliminary data from the China Passenger Vehicle Association (CPCA) suggests that Tesla delivered 85,982 new energy vehicles (NEVs) from its Shanghai plant, an increase of 39.4% from May 2025.
-
CNBC It also noted that Chinese automakers sold 1.36 million electric passenger vehicles in May, up 12% from a year earlier and up 11% from April.
-
Notably, BYD (BYDDY) broke an eight-month decline with 376,990 deliveries, basically unchanged.
-
Geely’s (GELHY) Leapmotor and Zeekr are up more than 80%, while Nio (NIO) is up 62.3% and Xiaomi (XIACY) surpasses 30,000 deliveries.
-
Li Auto (LI) fell 18.4% and XPeng (XPEV) fell 4.1%.
Global FSD Launch Important for TSLA Stock
The jump in sales came just as Tesla introduced its software to the world’s largest car market.
Tesla said its supervised full self-driving (FSD) system is now available in China. CNBC reported, days after CEO Elon Musk joined a US delegation at a Trump-Xi summit.
The report also noted that FSD already operates in markets such as the United States, Canada, Mexico and South Korea. However, Beijing News reported that a group of 10 Chinese owners are suing Tesla, alleging that the company claimed FSD was available before full regulatory approval was granted.
Once broader approvals are obtained, FSD could become a key growth driver. Additionally, Morgan Stanley estimates that partially automated vehicles could be a $200 billion market by 2030 and $400 billion by 2035.
