Tesla's (TSLA) stock rose by 6.7% on news from the Chinese market and advancements in its Semi truck, but intense competition and ongoing price wars in China continue to affect profits. Meanwhile, Xpeng (XPEV) performed well, whereas Li Auto (LI) saw a decline in stock price due to poor performance. This competitive pressure could potentially impact Tesla's long-term profitability, thus investors need to closely monitor market dynamics.

On May 21, Tesla's stock surged by 6.7%, closing at $186.60, while the S&P 500 index (SPX) and the Nasdaq Composite index (COMP) rose by 0.3% and 0.2% respectively, primarily attributed to news from the Chinese market and the latest developments in Tesla's Semi truck.

Dan Priestley, Tesla's Senior Engineering Manager for the Semi truck, showcased the vehicle at the Alternate Clean Transportation Expo in Las Vegas, revealing its benefits from Tesla's fastest charging technology, capable of traveling 1,000 miles in a day, a performance that exceeded many expectations. He also mentioned Tesla's plans for a new factory in Nevada set to begin production in 2026 with an annual capacity of 50,000 units.

Meanwhile, the latest financial report from Chinese electric vehicle manufacturer Xpeng showed performance exceeding expectations and provided robust financial forecasts for the second quarter despite facing intense market competition. Xpeng's stock surged nearly 22% in early trading and ultimately closed up 5.9%. In contrast, Li Auto's stock declined by 3.45% due to poor performance and lower-than-expected second-quarter revenue forecasts, closing at $21.71.

Intense competition in the Chinese market has led to a decline in electric vehicle prices, posing a challenge to all car manufacturers, including Tesla. CFRA analyst Aaron Ho downgraded Li Auto's rating from hold to sell due to competitive pressure. Xpeng's performance is relatively better, but the stocks of all three companies have seen significant declines this year, with Li Auto and Xpeng falling by approximately 44% and 40% respectively, while Tesla has declined by about 25%.