New York, Feb 1, 2026, 12:48 EST — Market closed.
- New January delivery updates from China have arrived just before Monday’s reopening.
- Tesla surged past other EV makers on Friday amid buzz over deals involving Elon Musk’s companies.
- Traders are focused on upcoming data and interest rate moves this week.
BYD reported January vehicle sales dropped 30.1% compared to the same month last year, hitting 210,051 units and marking the fifth consecutive month of declines. According to a filing, exports of its “new-energy vehicles”—a category covering battery-electric and plug-in hybrids—reached 100,482 units. The Business Times
These figures carry weight since China represents the largest market for electric vehicles, and monthly sales data can shift sentiment ahead of quarterly earnings reports.
EV shares have behaved much like long-duration growth stocks, reacting sharply to shifts in rates and risk appetite. That makes the sector particularly vulnerable when the calendar fills up with key events.
On Friday, Tesla shares gained 3.3%, finishing at $430.41. Rivian dropped 2.8% to $14.75, and Lucid lost 2.3%, closing at $11.07. Chinese EV ADRs traded in the U.S. also slipped, with NIO, XPeng, and Li Auto all moving lower. BYD’s U.S.-listed ADR fell 4.4%, ending the day at $12.37.
Tesla’s jump followed reports that SpaceX is negotiating a merger with xAI, while Bloomberg News revealed SpaceX had also considered joining forces with Tesla. “It would benefit investors dramatically,” said Andrew Rocco, a stock strategist at Zacks Investment Research, as speculation grows about more consolidation among Elon Musk’s companies. Reuters
In China, the pressure on BYD continues. Production dropped 29.1% in January, while sales of plug-in hybrids—vehicles that run on both battery and gasoline—declined 28.5%, according to the report. It also pointed to growing competition at the lower end of the market from Geely and Leapmotor. On top of that, China is cutting back subsidies for trade-ins of cheaper models.
U.S.-listed Chinese companies reported mixed results. NIO announced January deliveries of 27,182 vehicles, a 96.1% jump from a year earlier. The automaker also said total deliveries topped 1 million, reaching 1,024,774 as of January 31.
XPeng reported delivering 20,011 vehicles in January and rolled out its P7+ model in 36 countries.
Looking past individual company news, the wider market may take the hit. Jim Baird, chief investment officer at Plante Moran Financial Advisors, warned that “the onus is going to be on them to deliver,” highlighting how fast richly valued growth stocks can face sharp declines when results don’t keep pace with expectations. Reuters
The setup remains fragile. Should investors interpret China’s January numbers as the onset of weaker demand—or if concerns over rates flare up once more—EV stocks could quickly retreat. Meanwhile, the buzz around Musk’s group might fade without clear action to back it up.
The upcoming January employment report from the U.S. Bureau of Labor Statistics is set for Feb. 6 at 8:30 a.m. ET. This release has the potential to shift rate expectations and risk sentiment sharply in just one session.
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