Tesla’s Sales Slump in China by Almost Half

According to data released by the China Passenger Car Association on March 4th, Tesla’s wholesale sales in the Chinese market in February plummeted by 49% compared to the same period last year, reaching only 30,688 units. This figure marks the lowest monthly wholesale sales since July 2022 when Tesla delivered only 28,217 electric vehicles. There was also a significant decrease compared to the previous month, as Tesla delivered 63,238 vehicles in January.

Tesla’s weak performance in the Chinese market is not an isolated case. In the European market, Tesla is also facing challenges with declining sales, despite the overall growth trend in the electric vehicle industry.

As the world’s largest automotive market, Tesla’s performance in China is crucial. However, Tesla’s declining sales in China contrast sharply with its competitor BYD. Last month, BYD wholesaled over 318,000 pure electric and hybrid passenger vehicles, marking a 161% year-on-year growth. Wholesale delivery volume, unlike retail sales, is closer to the number of cars on the production line and can reflect export demand.

Following this news, Tesla’s stock price fell by 4.4% on Monday in the New York stock market, accumulating a 32% decline since the beginning of the year. The company’s stock price has essentially erased most of the gains seen after the U.S. elections, when investors had bet that Elon Musk’s close relationship with former President Donald Trump would positively impact the company’s development.

Tesla’s performance in the Chinese market in 2024 was also lackluster, with the annual delivery volume from its Shanghai factory experiencing a decline for the first time since mass production began in 2020. This indicates intensified local competition and signs of weakened global demand. Globally, Tesla sold a total of 1.79 million electric vehicles last year, slightly lower than the delivery volume in 2023 and below analysts’ expectations. By comparison, after ceasing the production of pure gasoline cars in 2022, BYD sold a total of 1.76 million pure electric vehicles last year. Including hybrid models, BYD sold a total of 4.25 million passenger vehicles last year.

Meanwhile, the China Passenger Car Association predicts that retail car sales in China in February increased by 26% compared to the same period last year, reaching approximately 1.4 million units. Among them, sales of new energy vehicles increased by 85% to reach 720,000 units.

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