Tesla is facing tough competition in China’s EV market, with sales down 12.2% year over year. Despite a rebound in August, Tesla is hoping the new Model Y+ variant will attract buyers. The Model Y has been a standout for Tesla, accounting for 70% of local sales.

The Model Y+ variant has been filed for approval in China, featuring a single-motor setup and LG Energy Solution batteries. With a potential range of nearly 500 miles, this model aims to compete better in a market focused on range and efficiency. Tesla hopes this variant will help it stay competitive in China’s crowded EV landscape.

Tesla’s rivals in China, including BYD, XPeng, and NIO, have seen strong sales gains. BYD leads in volume, delivering 582,500 EVs in Q3 2025, while XPeng saw a 149% year-over-year increase in Smart EV deliveries. Tesla’s global deliveries were at 497,099 units in Q3, up 7.4% year over year.

Despite the competition, Tesla stock has grown 72% in the past six months. However, with a forward price-to-sales ratio of 13.81 and a Value Score of F, Tesla faces valuation challenges. The Zacks Consensus Estimate for Tesla’s earnings has been revised over the past 90 days, with the stock currently holding a Zacks Rank #3 (Hold).

Read more at Nasdaq: Will the Long-Range Model Y+ Help Tesla Catch Up in China?