The Tesla Inc (NASDAQ: TSLA) stock price rose 2% after the China Passenger Car Association (CPCA) released data on EV sales in the country. The July deliveries data revealed that Tesla’s EV deliveries fell by 31% from June figures as its Chinese rival, BYD extended a massive lead against the US automaker.
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Tesla delivered 64,285 China-made EVs in July, up 128% from 28,217 a year earlier when the company shut down part of its Shanghai factory for maintenance. The same case applied in July as Tesla targets the hot summer months to close some of its production lines for upgrades and maintenance.
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The leading EV company kicked off a price war with over 40 EV companies in China by slashing prices in January to boost sales of its EVs in the world’s largest vehicle market. However, its Chinese peers led by BYD followed suit and slashed their prices to compete with Tesla.
Still, the tide is changing in China as consumers prefer to buy EVs from local brands instead of Tesla and other foreign brands. However, the company remains an industry leader after it grew its Chinese market share in H1 2023. The company delivered 156,676 Chinese-made cars in Q2 2023.
BYD, Tesla’s top Chinese competitor, delivered 261,105 passenger vehicles in July, of which 18,169 were exported. However, Tesla just upped the ante on its competition after announcing new cash bonuses on top-selling models in China in July. The decision is part of a global customer referral incentive, kicking off a new round of price cuts.
Still, BYD managed to outsell Tesla China by 29% in the first half, driven by its lower-priced Dolphin EV, which outsold Tesla’s Model 3. Tesla is expected to launch a revamped Model 3 in September this year.
Tesla and its Chinese competitors, including Nio, Xpeng, BYD and Li Auto, saw their EV deliveries soar in July after the Chinese government announced measures to boost new energy vehicle sales. The government wants to boost sales of big-ticket items as the country’s post-covid10 recovery slows down.
Meanwhile, investors eagerly await Tesla’s delivery numbers encompassing the rest of the world, including the US and Europe.
Tesla stock price.
The Tesla stock price rose 2.05% yesterday following the release of its July delivery numbers.
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