Tesla Inc.’s China deliveries slumped in July to the lowest level this year, as the electric vehicle maker struggles to attract buyers despite price cuts and other incentives.
(Bloomberg) — Tesla Inc.’s China deliveries slumped in July to the lowest level this year, as the electric vehicle maker struggles to attract buyers despite price cuts and other incentives.
The company’s Shanghai plant delivered 64,285 cars last month, a 31.4% drop from June, according to preliminary data published by China’s Passenger Car Association on Thursday. The PCA doesn’t break down numbers for local deliveries versus exports, but Tesla typically focuses on shipping overseas in the beginning of each quarter.
Tesla’s plant in Shanghai has capacity to produce 1.1 million EVs a year and accounts for more than half of the carmaker’s global output.
Elon Musk’s company started a price war in China last year when it cut prices on its Model 3 and Model Y vehicles, prompting many of its increasingly powerful local competitors to do the same. The reductions didn’t lead to a lasting bout of buying in China, which is struggling to lift economic growth following Covid.
Earlier Thursday: Tesla Offers Shopping Vouchers to Lure Shanghai Car Buyers
Still, Chinese EV startups are seeing a recent increase in sales, with BYD Co. – the top-selling car brand — delivering 262,161 new energy vehicles in July. Xpeng Inc., which has signed a deal to produce EVs with Volkswagen AG, reported a 28% increase in sales from June to 11,008 units, while Li Auto Inc. shipped 34,134 cars in July and Nio Inc.’s deliveries jumped to 20,462.
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