Tesla’s China-made electric vehicle sales drop 18% in April amid a fierce price war and intensifying competition from Chinese rivals like BYD.
Tesla
In a turbulent turn for Tesla, the automaker’s China-made electric vehicle (EV) sales we experienced a sharp decline in April.
According to the China Passenger Car Association (CPCA), Tesla sold 62,167 vehicles, an 18% decrease from last year.
This slump is occurring despite a surge in the broader market.
On Tuesday, concerns about waning demand and a fierce price war with Chinese competitors triggered a 3.8% drop in Tesla’s stock.
The company’s China-made cars, which comprised over half its global deliveries last year, are also exported to various markets, including Europe.
However, the CPCA should have disclosed a detailed breakdown of export destinations.
Deliveries of Model 3 and Model Y vehicles in China plummeted 30.2% from March, contrasting sharply with a rising EV market in China, the world’s largest auto market.
Although the market expanded at its slowest pace in a year during the first quarter, the sale of new-energy vehicles (battery-powered EVs and plug-in hybrids) reached 800,000 units in April, reflecting a 33% year-on-year increase.
Nonetheless, this was still a 2% drop from the previous month.
Meanwhile, BYD, Tesla’s primary Chinese competitor, recorded robust growth.
Its Dynasty and Ocean lineups sold 312,048 passenger vehicles in April, up 48.97% from the previous year and a 3.5% increase from March.
Globally, Tesla’s first-quarter deliveries declined for the first time in nearly four years. Its sales of China-made vehicles fell 4% between January and March compared to the same period last year.
Faced with this downturn, Tesla began the second quarter with aggressive cost-cutting measures, laying off over 10% of its global workforce and reducing vehicle prices in key markets like the United States, China, and Europe.
In a bid to stay competitive, Elon Musk visited China in late April to advance the rollout of Tesla’s advanced driver-assistance package in the region.
This move is intended to bolster its position against local competitors.
The EV market remains fiercely contested in China, and Tesla’s performance will be scrutinized closely as it navigates this challenging landscape.
The full April data is expected to offer further insights into the evolving market dynamics.
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