Tesla’s China-made EV sales fell 18% in April amid challenges from BYD and others

Shares of Tesla fell 3.8% on Tuesday amid concerns about softening demand for Tesla EVs and an intensifying price war, particularly with Chinese rivals.

Tesla’s China-made cars, which accounted for more than half of the automaker’s global deliveries last year, are also exported to various markets, including Europe, and the CPCA did not provide a breakdown of Tesla’s exports by destination. Tuesday’s figures are a prelude to full data for April later this week.

Also Read: Neo on track to unveil its first mass-market car in May 2024, targets Tesla

Deliveries of China-made Model 3 and Model Y vehicles fell 30.2% from March.

The sharp slide contrasts with rising EV sales in the world’s largest auto market, despite the slowest pace in a year in the first quarter.

According to CPCA data, sales of China’s new-energy vehicles, including battery-powered EVs and plug-in hybrids, are projected to reach 800,000 units in April, up 33% year-on-year and down 2% from the previous month.

Tesla’s biggest Chinese rival BYD, with its Dynasty and Ocean lineups of EVs and plug-in hybrids, sold 312,048 passenger vehicles in April, up 48.97% year-on-year and up 3.5% from March.

Tesla, led by its billionaire CEO Elon Musk, saw global vehicle deliveries fall in the first quarter for the first time in nearly four years.

Sales of Tesla’s Chinese-made vehicles in the January-March period fell 4% from a year ago.

The company announced layoffs of more than 10% of its global workforce in the second quarter and cut vehicle prices in key markets including the United States, China and Europe.

In late April, Musk visited China and made progress toward rolling out Tesla’s advanced driver-assistance package in China, which could help it better compete with local rivals.

Date of first publication: 08 May 2024, 06:21 AM IST