Elon Musk’s Tesla experienced an 11.5 percent decline in China EV sales during January, as domestic rivals continued to gain ground in the world’s largest auto market.
CNBC reports that Elon Musk and Tesla faced a setback in China as its car sales dropped by 11.5 percent in January compared to the same month last year. The company sold 63,238 EVs in China last month, a significant decrease from the 71,447 cars sold in January 2024. This decline comes amidst intensifying competition from Chinese domestic rivals, who have been steadily gaining market share.
In contrast, Tesla’s main competitor in China, BYD, saw a dramatic 47 percent year-on-year growth in sales, with 296,446 pure electric and plug-in hybrid vehicles sold in January. Other Chinese rivals, such as Changan Automobile and Xpeng, also reported growth in their sales figures, further highlighting the increasing pressure on Tesla in the Chinese market.
To maintain its attractiveness to Chinese buyers, Tesla has resorted to various incentives, including price cuts and financing options. In late 2024, the company slashed the price of its popular Model Y car and extended a zero-interest five-year loan plan until the end of January. Additionally, Tesla introduced a revamped version of the Model Y in China last month, accompanied by a zero percent interest plan to entice potential customers.
However, Tesla has not launched a new model since it began delivering the Cybertruck in late 2023, which starts at a hefty price tag of nearly $80,000. Investors have been eagerly awaiting a new mass-market model from the company to reinvigorate sales and maintain its competitive edge. Tesla has indicated that a new affordable model could be launched in the first half of 2025, but details remain scarce.
As Tesla navigates the challenging Chinese market, it is also pushing to launch its driver-assist system, marketed as “Full Self Driving,” in the country this year. This move comes as rivals are also rolling out similar features, further intensifying the competition in the autonomous driving space.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
