TLDR
- Tesla stock gained 1.2% in premarket trading Friday after a volatile October that left shares essentially flat for the month
- BYD lost over $20 billion in market value since May as Chinese regulators pressure automakers to end aggressive price wars
- Tesla shares moved more than 5% on four October trading days, double September’s volatility despite 33% monthly gain then
- Historical data shows November averages 12% gains for Tesla compared to just 2% in October with 11 positive Novembers since 2010
- BYD faces EU tariffs and labor controversies in Brazil while Tesla focuses on autonomous driving and battery technology advances
Tesla stock rose 1.2% to $445.24 in premarket trading Friday, closing out a turbulent October. The month delivered wild price swings but left shares nearly unchanged overall.
The electric vehicle maker saw four trading days with moves exceeding 5% in October. That’s double the two such days in September, when shares climbed 33%. Thursday brought a 4.6% drop as AI stocks sold off.
Tesla shares hit $470.75 early in October, coming within 4% of the December 2024 all-time high of $488.54. The stock has traded above $470 only three times and closed above that level once.
October ended with Tesla down roughly $3 for the month. No analyst upgrades or downgrades drove Friday’s gain.
BYD Market Value Drops as China Policy Shifts
BYD has shed more than $20 billion in market value since May. The Chinese automaker overtook Tesla in global EV deliveries earlier this year but now faces margin pressure.
Chinese regulators are pushing automakers to compete on innovation rather than price cuts. This forces BYD to abandon the aggressive discounting that powered its growth. Domestic demand is weakening as China’s economy slows and consumers become more selective.
Competitors like Li Auto and NIO are maintaining market share. Volume growth no longer guarantees profitability in China’s crowded EV market.
BYD’s international expansion faces obstacles. The European Union is preparing higher tariffs on Chinese EVs. A BYD subcontractor in Brazil faced criticism over alleged workplace violations, damaging the company’s reputation.
Plans for European manufacturing have slowed as trade tensions increase. Officials in Mexico and Brazil have raised concerns over labor and environmental standards.
November Trading History Favors Tesla
November historically outperforms October for Tesla stock. November averages 12% gains versus 2% for October. Tesla has posted gains in 11 of 15 Novembers since going public in 2010, compared to five positive Octobers.
Tesla’s shareholder meeting on November 6 will generate volatility. Investors vote on CEO Elon Musk’s compensation package worth up to $1 trillion. Analysts expect the package to pass.
BYD’s struggles may benefit Tesla. With its Chinese rival focused on protecting margins and managing compliance issues, Tesla can emphasize technology leadership in autonomous driving and batteries.
A slowdown in industry-wide price cuts could stabilize margins. This environment might support Tesla’s stock performance.
Tesla entered Friday up 9% year-to-date and 76% over the past 12 months. The stock has gained 27,500% since going public in June 2010.
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