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Tesla shares fell Monday after data from the China Passenger Car Association showed deliveries from its Shanghai Gigafactory at their lowest point in more than a year.
The Chinese Lunar New Year celebrations in February hurt sales, along with increased domestic competition.
Tesla continues to use price incentives to boost sales, but Chinese manufacturers such as Xpeng and BYD are matching the strategy.
Tesla Inc. (TSLA) shares fell more than 7% Monday after new sales data showed deliveries from its Shanghai Gigafactory at their lowest level in more than a year due to the recent Chinese Lunar New Year and domestic competition.
The automaker reportedly delivered 60,365 vehicles from its China factory in February, according to preliminary data from China’s Passenger Car Association (CPCA) on Monday. That marked the lowest level since December 2022 and was 19% lower year-on-year.
Vehicle sales are prone to a seasonal slowdown in China around the Lunar New Year early each calendar year, but the latest figures come amid a backdrop of slower electric vehicle (EV) sales and increased competition in the country.
Tesla continued adjusting its pricing strategy earlier this month by offering insurance subsidies to Chinese customers on its Model Y and 3 vehicles. That was in response to other data from the CPCA that showed demand in the country for new-energy vehicles falling 30% in January from December.
Tesla is also facing stiff competition from domestic EV rivals such as the Warren Buffett-backed BYD (BYDDY) and Xpeng Inc. (XPEV). BYD said Monday that it was slashing the price of its updated Yuan Plus SUV by 11.8% versus the price of the current version, while Xpeng extended a 20,000-yuan (about $2,780) discount on its top-selling G6 SUV to the end of March.
Tesla shares fell 7.2% to close Monday at $188.14. The stock has lost about a quarter of its value since the start of the year,
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