Tesla's October Sales Decline

According to data from the China Passenger Car Association (CPCA), Tesla’s electric vehicle sales in China fell 5.3% year-on-year in October, with 68,280 units delivered.

Model 3 and Model Y Sales

Sales of Tesla's China-manufactured Model 3 and Model Y also declined, dropping 22.7% compared to September.

Competition with BYD

This October decline contrasts with BYD's success, which recorded a 66.2% year-on-year increase in passenger vehicle sales, reaching 500,526 units from its Dynasty and Ocean series of EVs and plug-in hybrids.

While Tesla continues to lead in EV shipments, BYD has surpassed the U.S. automaker in overall revenue within the Chinese market.

Strategies to Boost Sales

To bolster sales in China, Tesla has implemented strategies such as extending a zero-interest financing offer on select Model 3 and Model Y vehicles until the end of November. This financing option, introduced in July, aims to drive demand amid stiff competition from local brands.

In its recent earnings report, Tesla exceeded market expectations for Q3, driven by cost-cutting measures, including layoffs earlier in the year. The company reported a Q3 EPS of $0.72, surpassing the analyst estimate of $0.60, while revenue was $25.18 billion, slightly below the consensus estimate of $25.4 billion.

Following the report, analysts at BCA Research stated that the "Tesla magic is back," noting the company's ability to surprise investors.