Tesla, BYD, Xpeng Face China EV Scrutiny

Tesla’s China-linked shares remain volatile after a sharp run-up and pullback, with the stock last trading at $362.86 on Aug. 21, above its 50-day moving average of $365.86 but still below the 200-day average of $403.32. The conventional RSI reading of 72.7 suggests the stock is nearing overbought territory, while the MACD remains negative, signaling that recent strength has not fully reversed the broader downtrend.

BYD, the domestic benchmark, has also lost momentum. Its shares closed at 80.78 on Aug. 21, below both the 50-day average of 86.18 and the 200-day average of 84.10, with RSI at 34.1 and a negative MACD reading. Xpeng, meanwhile, has been the weakest of the three, finishing at 12.19 and still far below its 200-day average of 17.16, reflecting investor skepticism about its ability to convert product launches into durable profitability.

The broader narrative is one of a market shifting from rapid EV adoption to harder questions about quality, oversight and pricing power. Adalytica’s US–China relations sentiment gauge was neutral at 50, while its China policy direction reading stayed elevated at 93, pointing to a policy backdrop that remains supportive of the sector but increasingly disciplined.

That leaves Auto China 2026 as a test of which companies can satisfy regulators, protect margins and still keep up with a market that is setting global standards for EV competition. Any fresh guidance on recalls, compliance costs or launch timing could move the stocks further, especially if the show reveals how much pressure China’s carmakers are absorbing to defend volume.