Tesla (TSLA) is retreating 5% after it was reported yesterday that its sales in China, combined with the sales of EVs that it exports to other markets from China, had tumbled 11.5% last month versus the same period a year earlier. Moreover, one of its top China-based rivals stated this week that it would start providing highly advanced driving assistance systems on all of its models.

Tesla's China Sales Slump

In January, the number of EVs that TSLA either sold in China or exported from the country fell 11.5% versus January 2024. However, the comparison between last month and January 2024 was impacted by the fact that four days of the Chinese New Year holiday this year occurred in January, while last year the holiday fell entirely in February. Still, a number of China-based EV makers, including BYD (BYDDY) and Xpeng (XPEV) did manage to register year-over-year sales increases in January.

BYD's Initiative

BYD announced yesterday that it plans to add highly advanced ADAS offerings to all of its vehicles, including its cheapest models. Among the features that will be offered are "remote parking via smartphones and autonomous overtaking on roads.," the Financial Times noted.

BYD sells one vehicle, the Seagull hatchback, for less than $10,000.

While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: The author owns shares of BYDDY and XPEV but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey.