Tesla's Sales Decline in China

BEIJING (Reuters) – U.S. automaker Tesla (NASDAQ:TSLA) reported a 4.3% year-on-year drop in sales of China-made electric vehicles, totaling 78,856 units in November, according to the China Passenger Car Association (CPCA).

Deliveries of Model 3 and Model Y vehicles saw a 15.5% increase compared to the previous month. In contrast, Chinese rival BYD (SZ:002594) achieved a new monthly record, with a 67.2% year-on-year increase, selling 504,003 units of passenger vehicles last month.

Overseas shipments accounted for 6.1% of total sales, per a company filing.

In response to the increased competition from BYD, Tesla introduced year-end incentives, including a limited-time 10,000 yuan (approximately $1,375.89) discount on outstanding loans for the popular Model Y. Additionally, Tesla has extended its zero-interest financing for certain Model 3 and Model Y vehicles in China for another month, marking the fifth extension since its inception in July.

As a result of these challenges, Tesla's share of the world's largest EV market fell to 6% in sales terms in October, nearly half of the September figure and the lowest in a year, according to Reuters’ calculations based on CPCA data.