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Tesla’s performance in the Chinese market saw a decline in March, affected by intensifying competition from local manufacturers. Reports from the China Passenger Car Association (CPCA) revealed that Tesla sold 78,828 electric vehicles in China that month, marking an 11.5% decrease compared to the same time last year. However, this figure represented a significant recovery from February, where only 30,688 vehicles were sold, reflecting a 157% increase from the preceding month.
The challenges for Tesla in China are being exacerbated by the growth of local competitors. Notably, BYD achieved sales of 371,419 new energy vehicles in March, which includes hybrids and fully electric cars, demonstrating a 23% increase year-on-year. Similarly, Geely, known for brands including Volvo, reported a remarkable 167% sales increase, with 119,696 vehicles sold in March.
In response to the fierce competition, Tesla introduced an updated version of its Model Y in January as part of its strategy to regain market share. Despite these efforts, the automaker experienced significant stock market difficulties, with shares falling by 3.04% in premarket trading, representing the worst quarterly performance for the company since 2022.
Additionally, there are concerns regarding how automotive tariffs proposed by former President Donald Trump could affect Tesla’s supply chain, particularly in Mexico and China. CEO Elon Musk’s involvement with government initiatives aimed at reducing workforce size has also drawn criticism. In a recent statement, Musk suggested that his association with the cryptocurrency platform DOGE might negatively influence Tesla’s stock performance, amid ongoing protests and boycotts targeting Tesla dealerships globally.
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