Elon Musk’s Tesla saw shipments from its Shanghai factory in June plummet 24.2% from the same month last year, marking its fourth decline this year as the company struggles with intensifying price wars in the Chinese market.
Bloomberg Report Tesla’s Model 3 and Model Y deliveries fell to 71,007 units in June, down 2.2% from May, according to the latest data from the China Passenger Car Association. The decline comes at a critical time for the company, which is due to report its second-quarter global production and delivery numbers in the U.S. later today.
A drop in Tesla’s production in China is of particular concern because it is the world’s largest electric vehicle market and Elon Musk has invested heavily in the country, which is expected to exacerbate pressure on Musk’s company, which is already struggling due to slowing EV sales growth around the world.
Tesla Delivered Second-quarter EV sales totaled 443,956 units, down 4.8% from the same period last year, marking the automaker’s second consecutive quarterly decline.
Despite Tesla’s struggles, China’s overall new energy vehicle market is showing signs of growth. Sales of new energy vehicles rose 28% last month compared with June 2023, according to provisional data from the Passenger Car Association. The growth is partly due to the gradual implementation of trade-in car subsidies announced in April.
While Tesla faces headwinds, other Chinese electric vehicle makers are enjoying success. Shenzhen-based BYD led the way with a record number of passenger vehicle sales of 340,211 units in June. Li Auto delivered 47,774 vehicles, driven mainly by strong demand for its newly launched long-range, five-seater electric L6 model.
Other Chinese automakers have also seen impressive results, with NIO and Geely Automobile Holdings’ Zeekr brand both hitting record highs, delivering more than 20,000 cars each in June.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
