Just hours after Delaware Chancery Court Judge Kathaleen McCormick ruled against Elon Musk's record (but "deeply flawed" according to her) $56 billion performance-based compensation package, Tesla reported sales numbers out of China that didn't offer any respite for its stock.
According to the China Passenger Car Association (CPCA), Tesla's sales of China-made electric vehicles fell 4.3% year-on-year to 78,856 in November, Yahoo/Reuters reported.
Sequentially, Model 3 and Model Y vehicles saw a 15.5% increase from the month prior, but it wasn't enough to show YOY growth for the automaker.
Tesla introduced a limited-time 10,000 yuan ($1,375.89) loan discount on its Model Y in China, aiming to stay competitive as BYD's aggressive price cuts gain traction.
The report added that Chinese automaker BYD set a new monthly sales record in November, with a 67.2% year-over-year increase, delivering 504,003 passenger vehicles from its Dynasty and Ocean series. Overseas sales accounted for 6.1% of the total.
Tesla extended its zero-interest financing for Model 3 and Model Y vehicles in China through December, marking the fifth extension since July. The company's market share in China's EV sector dropped to 6% in October, its lowest in a year and nearly half of September's level, per CPCA data.
We wrote last month that Chinese EV makers were slated to end the year with a "continued sales surge". .
China's major EV makers ended Q3 stronger than last year, with solid deliveries reducing the need for discounts, according to Bloomberg.
Now, analysts predict a sales surge in Q4. EV and hybrid sales are booming, driven by expanded subsidies. In September, EVs and hybrids made up about 53% of new car sales.
Bloomberg Intelligence analyst Joanna Chen commented: “Industry demand has been better than expected since the third quarter following China’s beefed-up subsidies but many automakers still need a major push in the fourth quarter to hit their annual sales targets.”
She continued: “The first nine months usually contribute 70% of annual car sales and automakers below that threshold are under greater pressure to step up discounts in the quarter.”
