Tesla is leaning on overseas upgrades as domestic headwinds mount, including a sharp stock decline, potential loss of EV tax credits, and bearish delivery forecasts from top brokerages.

Tesla has introduced performance upgrades to its Model 3 and Model Y in China, as it battles softening demand, growing Chinese EV competition, and a sharp decline in its stock price in 2025.

Shares of the U.S. EV giant closed nearly 2% lower on the Nasdaq Monday.

The Model 3 Long Range AWD in China now includes the acceleration boost package as standard, reducing 0–100 km/h times to 3.8 seconds and increasing range to 753 km, according to a report by CnEVPost. 

Meanwhile, pricing has risen nearly 4% to 285,500 yuan ($3,985.15). 

The Model Y Long Range in China also saw its range extended to 750 km without a price change. The delivery wait times for both models have shortened to 1–3 weeks.

But while Tesla refreshes its lineup overseas, storm clouds are gathering at home. 

The company’s shares are down 21% year-to-date, underperforming not only rivals like BYD and Xpeng but also legacy U.S. players such as Ford. 

The Trump administration’s 25% tariff on imported vehicles and proposed elimination of the $7,500 EV tax credit by September have added pressure on Tesla’s U.S. business.

Brokerages are growing more bearish. 

JPMorgan expects Tesla’s Q2 deliveries to fall to just 360,000, well below the 392,000 Bloomberg consensus, and issued a stark $115 price target, implying over 64% downside from current levels. 

UBS echoed similar concerns, projecting 366,000 deliveries. Tesla delivered 336,681 vehicles in Q1, down 13% YoY, marking its worst quarter in two years.

With consumer EV subsidies at risk, Tesla’s U.S. competitiveness could erode further. 

Both Model Y variants currently qualify for the $7,500 federal credit, but that advantage may vanish by fall.

As Chinese rivals surge in both performance and stock gains — XPeng is up 51% YTD, BYD over 37% — Tesla is leaning heavily on global demand, pricing adjustments, and AI-driven innovation to stay in the race.

On Stocktwits, retail sentiment for Tesla was ‘bearish’ amid ‘low’ message volume.

The stock has declined about 20% so far in 2025.

($1=7.16 yuan.)

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