Tesla Inc.'s stock plummeted over 8% in midday trading on Thursday, September 6, as the electric vehicle maker grappled with mounting challenges in its crucial Chinese market and broader economic concerns dragged down the broader tech sector.
The sharp sell-off came as data from Shanghai-based consultancy Automobility revealed that Tesla's market share in China slipped to 6.5% in the first seven months of 2024, down from nearly 9% a year earlier. This decline has been attributed to Tesla's lack of new electric vehicle model launches in China since 2019, while domestic rivals like BYD have flooded the market with over 100 new models this year alone.
Tesla's struggles in China, its second-largest market after the United States, added to the broader sell-off in U.S. stocks on Thursday. The benchmark S&P 500 index and the tech-heavy Nasdaq composite both fell sharply, as weak economic data, including a disappointing August jobs report, fueled concerns about slowing growth and the possibility of more aggressive interest rate hikes by the Federal Reserve.