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Tesla’s Sales Performance in China
Tesla solidified its standing as the second-largest seller of electric vehicles in China for April, despite experiencing a decline in sales within the world’s largest auto market. The American company, based in Austin, Texas, delivered 62,167 vehicles manufactured in China last month. This figure represents an 18% decrease compared to the same period in 2023, as indicated by preliminary data disclosed by the China Passenger Car Association (CPCA) on Tuesday. In addition, Tesla observed a 30% drop in sales from March, during which it managed to sell 89,064 China-made electric vehicles.
This performance places Tesla in the second position among EV sellers for the month of April, trailing behind main competitor BYD. The Shenzhen-headquartered automaker accomplished sales of over 330,000 new energy vehicles in the previous month, with 145,576 of those being battery electric vehicles, marking a remarkable 49% growth on a year-over-year basis. In the last quarter of 2023, Warren Buffett-linked BYD momentarily superseded Tesla to acquire the top global sales spot for EVs.
Tesla’s Strategic Moves in China
Amidst its sales achievements and challenges in China, Tesla has strategically aimed to enhance its presence in the market. This endeavor includes the revision of pricing strategies and notable advancements towards the full integration of its Full Self-Driving driver assistance technology. A recent surprise visit to Beijing further demonstrates Tesla’s commitment to strengthening its foothold in the region.
Moreover, Tesla’s CEO, Elon Musk, has been systematically restructuring the company by replacing executive leaders, downsizing the workforce, and intensifying his control over North American operations. Tom Zhu, the Senior Vice President of Automotive, is now refocusing on overseeing operations in the Chinese market after playing a pivotal role in optimizing Tesla’s Gigafactory Shanghai. Zhu, known for turning the GTAS plant into a key performer for Tesla, recently took part in a meeting with Chinese Premier Li Qiang, emphasizing the significance of Tesla’s presence in China.
Zhu’s efforts have been integral to Tesla’s success in the Chinese market, standing out as one of the three senior executives prominently featured on Tesla’s website following the departure of Drew Baglino, a veteran of nearly two decades at the company. In contrast to its competitors, Tesla opted not to leverage the Beijing Auto Show as a platform to bolster consumer interest.
Industry Outlook and Competition
The CPCA anticipates an upswing in car sales for May, attributed to the ongoing auto show and China’s trade-in program. In April, total sales of electric passenger cars in China witnessed a 33% year-over-year surge, totaling around 800,000 units. However, this figure reflects a marginal 2% decline from the preceding month.
Notable automakers following BYD and Tesla include Changan Automobile and Geely Auto, securing the third and fourth spots respectively. Changan reported sales of 51,682 vehicles, while Geely, the parent company of Volvo, Polestar, and Zeekr, recorded the sale of 51,428 units. Other players in the market such as Xiaomi and Li Auto also made significant strides. Xiaomi debuted its first EV, the SU7, with sales totaling 7,058 units, while Li Auto attained sales of 25,787 units in April and received over 30,000 orders for the L6 SUV launched in mid-April.
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