Sales of Tesla China-Made EVs Drop in May Amid Production Cuts

Sales of Tesla China-made electric vehicles (EVs) declined in May, marking the second consecutive month of year-on-year decreases.

According to data from the China Passenger Car Association (CPCA), Tesla sold 72,573 units, a 6.6% drop from last year.

Tesla Declining Sales:

The decline in May follows an 18% fall in April, which reversed a slight 0.2% gain in March.

This trend indicates a weakening demand for Tesla’s vehicles in the Chinese market, particularly for the Model Y, which has been a significant driver of sales for the company.

Production Cuts in Tesla:

In response to the declining demand, Tesla has slashed Model Y production by a double-digit percentage at its Shanghai plant since March.

This strategic move aims to balance supply with the current market demand for the aging model in China.

Reuters reported on the production cut in late May, highlighting Tesla’s challenges in maintaining its sales momentum in one of its key markets.

Mixed Results for Different Models:

Despite the decline, deliveries of the China-made Model 3 and Model Y vehicles increased by 16.7% from April. This indicates some resilience in the market for Tesla’s offerings, albeit not enough to offset the year-on-year decline.

Chinese automaker BYD continues to dominate the market with its Dynasty and Ocean series of EVs and plug-in hybrids.

In May, BYD sold 330,488 passenger vehicles, achieving a significant 38.2% increase year-on-year. This robust performance underscores the intense competition Tesla faces in the Chinese EV market.