Elon Musk’s Tesla has suffered a massive 24.2 percent year-on-year decrease in shipments from its Shanghai factory in June, marking the fourth decline this year as the company grapples with an intensifying price war in the Chinese market.
Bloomberg reports that the latest figures from China’s Passenger Car Association reveal that Tesla’s deliveries of Model 3 and Model Y vehicles dropped to 71,007 units in June, a 2.2 percent decrease compared to May. This decline comes at a crucial time for the company, as it prepares to release its global second-quarter production and delivery figures later today in the United States.
The slump in Tesla’s Chinese output is particularly concerning given that China represents the world’s largest electric vehicle market, along with Elon Musk’s major investment in China. This downturn is expected to exacerbate the pressure on Elon Musk’s company, which is already facing challenges due to slowing EV sales growth worldwide.
Tesla delivered 443,956 EVs in the second quarter, representing a 4.8 percent decrease from the same period last year. This represents the second consecutive quarterly decline for the automaker.
Despite Tesla’s struggles, the broader Chinese new-energy vehicle market shows signs of growth. Preliminary data from the Passenger Car Association indicates a 28 percent increase in new-energy vehicle sales last month compared to June 2023. This growth is partly attributed to the gradual implementation of trade-in car subsidies announced in April.
While Tesla faces headwinds, other electric vehicle manufacturers in China are experiencing success. Shenzhen-based BYD Co. led the charge with record passenger vehicle sales of 340,211 units in June. Li Auto Inc. delivered 47,774 cars, primarily due to strong demand for its newly launched extended-range electric five-seater L6 model.
Other Chinese automakers also achieved impressive results, with both Nio Inc. and Geely Automobile Holdings Ltd.’s Zeekr brand reporting record highs, each delivering over 20,000 cars in June.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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