Tesla sales decline in China

According to data from China Passenger Car Association (CPCA), Tesla sold a total of 68,280 electric vehicles in China in October, a decrease of 5.3% compared with the same period last year and a significant drop of 23% from the previous quarter.Among them, demand for the main sales models, Model 3 and Model Y, weakened.

Although Tesla's U.S. third-quarter earnings report was outstanding, the decline in sales in the China market shows that it is facing fierce competition from local brands.To stimulate demand, Tesla extended its zero-interest promotion plan for some Model 3 and Model Y until the end of November.However, the market response fell short of expectations, demonstrating Tesla's challenges in brand influence and price positioning.

BYD sales hit new high

In sharp contrast to Tesla's slowdown in sales, BYD's sales of new energy vehicles hit a record high of 500,526 units in October, an annual increase of 66.2%.Its "Dynasty" and "Ocean" series models have strong demand and dominate the domestic market.

It is worth mentioning that nearly 6% of BYD's sales come from exports, indicating that it is steadily entering overseas markets.BYD's continued growth in the China market highlights consumers 'acceptance and recognition of local brands, further increasing Tesla's competitive pressure.

Tesla's future strategies and challenges

Although Tesla's global sales growth has been significant, the slowdown in growth in the China market is cause for concern.

Musk said at a recent earnings conference that the company will launch a more price-competitive model in 2025 at a price below $30,000, aiming to promote the popularity of electric vehicles.However, the development of low-cost models is full of challenges, and Tesla still has to face the problem of how to reduce production costs while maintaining profits.

Tesla also plans to further optimize costs. The Shanghai Super Factory reached the milestone of rolling off the production line of the 3 millionth vehicle in October, becoming Tesla's important global production center.

Competition in China's market is fierce

Although Tesla still leads BYD in global sales, its revenue has been surpassed by BYD.BYD's growth driving force comes not only from sales growth, but also from its steady improvement in profit margins.

Recently, other China electric vehicle manufacturers such as Xiaopeng and Geely also hit new sales records in October, showing the diversity and strong demand for electric vehicles in the China market.

If Tesla wants to achieve its full-year sales growth target for 2024, it must significantly improve sales performance before the end of the year. However, facing many strong local rivals, it faces considerable challenges.