Electric vehicle giant Tesla Inc. (NASDAQ:TSLA) is facing mounting competitive pressures from Chinese rivals who are quietly eating into its market share, both in China and Europe.

One of the company’s most prominent rivals is Xpeng Inc. (NYSE:XPEV), which has been on a tear over the past year, running circles around its U.S.-based competitor.

Xpeng Inc.

Xpeng’s shares have surged 107% year-to-date, driven by the company’s strong delivery growth, with 41,581 vehicles being delivered in September alone, an increase of 95% year-over-year. Its revenue, earnings and guidance figures have kept pace, with all more than doubling from the prior year.

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This growth has been primarily driven by the company’s aggressive product roll-out, with its new G6 and G9 boasting 535 and 585 in range, alongside a quick charging time of just 12 minutes.

At the same time, the company has pursued an aggressive overseas expansion strategy, resulting in a 137% year-over-year surge in overseas sales. Early this week, the company entered into five new European countries, Austria, Switzerland, Croatia, Hungary and Slovenia, according to a report by MobilityPortal.

According to Benzinga’s Edge Stock Rankings, the stock scores high on Momentum, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.

Tesla Inc.

American EV giant Tesla has had a volatile year in 2025, and after several troughs and crests in recent months, the stock is now up 17.25% year-to-date.

The company has been reeling from dropping sales across key regions in recent months, hitting a 3-year low in its key European markets. Tesla faces mounting competitive pressures from Chinese brands such as Xpeng, alongside BYD Company (OTC:BYDDY) and Nio Inc. (NYSE:NIO), among others.

Besides this, the company has been hit by the fallout of CEO Elon Musk’s growing involvement in politics and being part of the Trump administration.

Tesla is also struggling with dropping sales in China, which comes at a time when the market share of EVs has touched 51% for the first time, in the second most populous country in the world. In 2024, China represented 70% of the global EV market in volumes.

Despite its recent troubles, the stock continues to score high on Momentum and Growth in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, the company, and its finances.

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