Tesla shares drop over 2.5% as competition ramps up in China. Tesla is facing weakening sales trends globally amid a 49% sales drop in Europe and rising competition from BYD. TSLA are trading lower Monday as the company faces growing pressure from Chinese electric vehicle competitors, which posted strong delivery numbers for May. What To Know: Tesla’s rivals, BYD, Li Auto, Nio and Xpeng, saw sales growth in China last month. Li Auto reported a 17% month-over-month increase, delivering 40,856 vehicles. Nio followed with over 33,500 deliveries and Xpeng delivered more than 23,000 units. BYD led the group with 204,369 battery electric vehicle deliveries in May, representing a 40% year-over-year increase. Meanwhile Tesla has battled declining sales in the region after reporting roughly 58,000 vehicle sales in China in April, including exports. The company’s sales in the first eight weeks of second quarter have declined 23% year-over-year, suggesting continued softness in its second-largest market. Despite improving registration numbers in May — over 11,000 units registered in China for two consecutive weeks — the broader trend remains negative. Tesla’s challenges extend beyond China. In Europe, the company posted a steep 49% drop in sales for April. For the first time, BYD surpassed Tesla in the region, signaling a significant shift in EV market dynamics. Investors are watching closely as Tesla approaches its June 12 Robotaxi unveiling in Austin, a potential catalyst for the EV stock. Tesla CEO Elon Musk said last month that all that matters for the company long term are autonomy and the company's Optimus bots, which are expected to “overwhelmingly dominate the future financial success of the company.” Trending Investment Opportunities