Tesla's struggles extend beyond China, with European sales experiencing a significant downturn in April. (Image: Milan Csizmadia/Unsplash)
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Tesla's struggles extend beyond China, with European sales experiencing a significant downturn in April. (Image: Milan Csizmadia/Unsplash)
Tesla's China-manufactured electric vehicle (EV) sales continued their downward trajectory in April, marking the seventh straight month of year-over-year (YoY) decline as the American automaker confronts mounting obstacles both in Asia and Europe, says a report by news agency Reuters.
According to data released Wednesday by the China Passenger Car Association (CPCA), deliveries of China-produced Tesla Model 3 and Model Y vehicles totalled 58,459 units last month. This represents not only a 6 per cent decrease compared to April 2023 but also a substantial 25.8 per cent drop from March 2024 figures.
The company's struggles extend beyond China, with European sales experiencing a significant downturn in April. Market analysts attribute this decline to growing consumer dissatisfaction with CEO Elon Musk's public alignment with far-right political movements and candidates across Europe. As Tesla's popularity wanes in the region, Chinese competitors have seized the opportunity to increase their market presence.
Similar headwinds have emerged in Tesla's home market, where protests against Musk have coincided with declining sales figures. The company's once-stellar brand image appears increasingly vulnerable to its CEO's controversial public persona.
In response to weakening performance in established markets, Tesla is accelerating expansion efforts in emerging economies such as India and Saudi Arabia. However, these potential growth territories are also being targeted by Chinese electric vehicle manufacturers, suggesting intense competition will follow Tesla into these new markets.
While Tesla struggles, its primary Chinese competitor BYD continues to thrive. The manufacturer reported an impressive 19.4 per cent year-over-year increase in global passenger vehicle sales last month, delivering 372,615 vehicles across its Ocean and Dynasty electric and hybrid lines.
The competitive landscape grows increasingly challenging for Tesla, with approximately twelve new electric crossover models unveiled at last month's Shanghai auto show. Many of these vehicles are strategically priced to compete directly with the Model Y, Tesla's bestselling vehicle globally.
According to multiple reports, Tesla plans to begin mass production of a more affordable Model Y variant at its Shanghai facility in 2026, a move analysts view as crucial for defending the company's market position in China and beyond.
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