Elon Musk's EV maker Tesla's shares fell over 7% on Monday after data from China’s Passenger Car Association revealed that deliveries from its Shanghai Gigafactory fell to their lowest level in more than a year. The recent Chinese Lunar New Year and domestic competition have lead to the fall in sales.
Tesla shares fell 7.2% to close Monday at $188.14. The stock has lost about a quarter of its value since the start of the year
According to preliminary data from China’s Passenger Car Association (CPCA) on Monday, Tesla has delivered 60,365 vehicles from its China Factory in February, marking the lowest level since December 2022 and was 19% lower year-on-year.
Usually around the Lunar new year, the vehicle sales come down in China. This year China has also been seeing slower electric vehicle (EV) sales and increased competition in the country.
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The firm has been facing tough competition from domestic EV rivals such as the Warren Buffett-backed BYD (BYDDY) and Xpeng Inc. (XPEV). BYD on monday said that it was slashing the price of its updated Yuan Plus SUV by 11.8% versus the price of the current version, while Xpeng extended a 20,000-yuan (about $2,780) discount on its top-selling G6 SUV to the end of March.
Earlier this month, Tesla adjusted its pricing strategy by offering insurance subsidies to Chinese customers on its Model Y and 3 vehicles. That was in response to other data from the CPCA that showed demand in the country for new-energy vehicles falling 30% in January from December.
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