Tesla's Shipments in China Decline for 5 Consecutive Months

Tesla's February Shipments Hit Lowest Level Since COVID-19
BYD Continues Growth, Nears 15% Market Share
High Prices and Lack of New Models Are to Blame

Electric vehicle maker Tesla, led by CEO Elon Musk, has seen its shipment volume in the Chinese market decline for five consecutive months. Analysts suggest that BYD, the leading Chinese electric vehicle manufacturer, is rapidly growing and posing a threat to Tesla.

Bloomberg News reported on the 10th, citing data from the China Passenger Car Association, that Tesla's shipments from its Chinese factory have decreased for five consecutive months compared to the same period last year. February shipments dropped sharply by 49% year-on-year to 30,688 units, the lowest since July 2022 (28,217 units) during the COVID-19 pandemic.

The impact of Tesla's Shanghai factory modifying some production lines was significant, but Tesla's sales had been on a declining trend even before that.

According to year-end data from the China Automotive Technology and Research Center, Tesla's market share among the top 12 automakers in China (including electric vehicles, hybrids, and other vehicles) was only 2.6%.

In contrast, BYD is growing rapidly. BYD completely ceased production of internal combustion engine vehicles in March 2022, and its market share has since approached 15%.

In February this year, BYD sold more than 318,000 electric and hybrid passenger vehicles, a 161% increase compared to the same period last year. Overseas sales also set a record at 67,025 units.

Tesla's sales are sluggish outside of China as well. Despite a surge in overall electric vehicle sales in Germany last month, Tesla's sales there plummeted 76% to just 1,429 units.

The poor sales performance in the Chinese market is attributed to high prices and a lack of new models. Tesla's Model Y and Model 3, produced in China, have seen slight price reductions but still maintain an average selling price of about $33,500, which remains high.

BYD's best-selling hatchback model in China this year, the Song Plus, has seen consumer prices reduced by 8-18% depending on vehicle specifications, with the highest price at $21,000. Another popular BYD model, the Seagull, has an average selling price of $9,900, making it much more affordable.

Bloomberg noted, "The key question is whether BYD can replicate its success in overseas automotive markets outside China despite tariffs," adding, "Establishing a brand overseas requires time and significant investment."