Tesla's China-made electric vehicles are down 18% compared to a year earlier after only selling 62,167 in April; this follows after sales were down 30% for the EV giant in March, according to Reuters, citing data from the China Passenger Car Association.
With BYD as its main competitor, Tesla is now the second-largest EV seller in April. The Shenzhen-based carmaker saw a 49% increase in sales of new energy vehicles last month, with almost 330,000 being battery-electric vehicles.
In the fourth quarter of 2023, BYD, sponsored by Warren Buffett, briefly overthrew Tesla to take the top spot in EV sales worldwide.
Following an unexpected trip to Beijing last month, Tesla is reportedly trying to increase its profile in China by cutting pricing and taking significant steps toward the complete introduction of its Self-Driving driver assistance technology.
Elon Musk, the CEO of Tesla, made an unexpected trip to Beijing in late April to turn around the company's fortunes there. While there, he was given the go-ahead to introduce the company's driver-assistance system in China.
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Tesla's Efforts in China
According to sources, Tesla was given approval subject to several restrictions and overcame two significant obstacles: securing a mapping and navigation agreement with Baidu Inc., a major player in the Chinese tech industry, and fulfilling standards regarding its handling of privacy and data security.
Sources indicate that Musk suggested testing the company's self-driving capabilities in China by using its cars as taxis on his most recent visit. According to reports, the Chinese government may have partially assisted with this proposal.
Tesla and Baidu intend to collaborate to increase the company's usage of FSD technology. However, it must convince Beijing that sending vehicle data from China to the US would not compromise national security.
Previous reports add that Senior Vice President of Automotive Tom Zhu is returning to his position managing the Chinese market as Musk fires executives, fires employees, and gains more authority over North American operations.
Tesla's Continued Downward Trend
Tuesday saw a 3.8% decline in Tesla stock as investors became more concerned about the company's EV sales slowing down and the growing pricing battle, particularly with Chinese competitors.
Investors are concerned about Tesla's issues in China, particularly since local rivals provide similar autopilot features at lower costs and a more comprehensive selection of cars.
Due to current difficulties, the EV manufacturer has reduced employment across the board, including in China, impacting thousands of employees in several areas.
Over half of Tesla's global deliveries last year came from China. The carmaker also sells its vehicles to other regions, such as Europe.
However, the CPCA did not break down Tesla exports by destination. The data released on Tuesday is a taste of what's to come later this month: the complete April data.
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(Photo: Tech Times)
