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yesterday

Tesla Faces Seventh Month of Declining China Deliveries as Competition Intensifies

April sales dropped 6% year-on-year, with Tesla emphasizing localized production and discounts to counter rising competition from Chinese EV makers.

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The New Model Y Isn't Saving Tesla: Tesla Model Y, Critical Materials
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Overview

  • Tesla's Shanghai Gigafactory delivered 58,459 vehicles in April, a 25.8% drop from March and a 6% decline compared to April 2024, marking its seventh consecutive month of shipment decreases.
  • Chinese competitor BYD surged ahead with a 19.4% year-on-year increase, delivering 372,615 vehicles globally in April, highlighting Tesla's eroding market share in China.
  • In response to declining demand, Tesla is promoting its 'Made in China' branding and offering 0% financing and direct discounts to attract buyers in its largest EV market.
  • Tesla announced plans to introduce a cost-reduced Model Y variant in Shanghai by 2026, aiming to compete in the increasingly price-sensitive Chinese market.
  • The company's sales challenges are compounded by consumer backlash tied to Elon Musk's political affiliations, which have damaged Tesla's brand in key Western and global markets.