Actively Discounts, Tesla Sales Stay Down In China In February

JAKARTA - Tesla only sold 60,365 vehicles manufactured in China in February, sales fell 19 percent from the previous year and are the lowest volume since December 2022, according to data from the China Passenger Car Association.

Reported by Reuters, March 5, the Tesla plant in Shanghai produces Model Y electric cars and Model 3 for local markets, Europe, and other countries, and more than half of Tesla's global shipments last year came from this factory.

The decline in sales in Tesla's main market reduces Tesla's global shipping outlook, as leading electric vehicle makers (EVs) are battling declining demand and increasing competition, as well as being burdened by the lack of entry-level vehicles and the length of their product lines.

As a result of a decline in sales down in February, Tesla's (TSLA.O) shares fell more than 7 percent on Monday. Meanwhile, the decline in sales is likely due to a slowdown during the Chinese New Year holiday. It is known that China's Chinese New Year holiday falls in February, reducing car purchase activity.

Whereas previously, Tesla had provided a series of price cuts and incentives to fend off its vehicle demand slowdowns and at the same time increase competition from Chinese competitors such as BYD.

"This is the perfect headwinds storm for Tesla in China. This is negative point data that adds to the stock," said Wedbush analyst Dan Ives.

Last week, Tesla launched new incentives including insurance subsidies to attract consumers in the world's largest automotive market.

Meanwhile, BYD has just released (BYD Yuan Plus/Atto3) a new version of its best-selling car at a lower price than its predecessor's final price in order to increase price wars with competitors. Previously, BYD's sales also fell by only 122,311 in February, down 37 percent from the previous year.

In the United States, Tesla this March offered 8000 km of free Supercharging to customers exchanging their old vehicles for new Tesla vehicles before March 31. In February, Tesla temporarily cut the price of some of its Model Y cars in the US.

Analyst Troy Teslike revised its forecast for Tesla's global shipment for the first quarter of this year, saying China's sales were weaker than expected despite price cuts showing "problem demand."