In April, Tesla’s Chinese factory sold 58,459 Model 3 and Model Y vehicles. These vehicles, manufactured in Shanghai, are supplied not only to the domestic market but are also exported to Europe and Asia-Pacific countries. At the same time, the company’s competitors – Nio, Xpeng, Li Auto, and Xiaomi – demonstrated significant sales growth.
The capacity of Tesla’s Shanghai enterprise allows for the production of about one million cars per year. However, this year’s figures may turn out to be significantly lower due to a 25.8 percent drop in sales in April compared to March.
According to the China Passenger Car Association, 58,459 domestically assembled Model 3 and Model Y electric vehicles were sold last month. It is important to note that this figure includes both sales in the local market and deliveries to other markets, including European and Asian ones.
This is not the first case of a decline in Tesla’s sales volumes recently. In April, the company recorded a drop in demand in countries such as Spain, Germany, Belgium, France, the Netherlands, and the United Kingdom. In the Chinese market, where the brand previously led the electric vehicle segment, seven models from local and Korean manufacturers outsold the Model Y in terms of sales volume in April.
Competitors Are Advancing
Numerous factors are influencing the decrease in demand for Tesla’s products. Among them is the negative public attitude towards CEO Elon Musk due to his political activity not only in the USA but also worldwide. Furthermore, the company’s model range lags behind competitors in terms of relevance and diversity, as the main sales are provided only by the Model 3 and Model Y.
Competing brands are quickly catching up with the American manufacturer. In April, Nio increased its sales volume by 53% compared to last year, selling 23,900 vehicles. Xpeng showed its second-largest monthly result – 35,045 cars sold. Xiaomi managed to deliver over 28,000 vehicles, while Li Auto increased sales by 32%, reaching 33,939 units.