- Tesla Inc.'s shipments from its Shanghai factory declined for the third time this year in May, highlighting the intense competition in the Chinese market. Despite the drop, Tesla's shipments, which include both domestic sales and exports, saw a 17% increase from April, totaling 72,573 vehicles. However, this is a 6.6% decrease compared to the same period last year, according to preliminary data from China’s Passenger Car Association.
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The broader market for new-energy passenger vehicles in China showed strong performance, with industrywide wholesales estimated at 910,000 units, a 35% increase from the previous year. This growth is driven by price discounts from EV makers and government subsidies. While Tesla struggles to maintain its growth in China, local automakers like BYD Co. have seen substantial sales increases. BYD, the top-selling brand in the country, shipped 330,488 vehicles in May, up 38% from last year. Other local companies such as Nio Inc., Xpeng Inc., and Li Auto Inc. also reported strong sales figures.
Why it matters
China's EV sector remains highly competitive, with automakers offering discounts and quickly launching new models to attract consumers.
