Tesla reported that its vehicle sales in China dropped nearly 33% year-on-year to 27,249 units in July, marking a 48.51% decrease from the previous month. However, the company achieved a record export of 66,330 units from its Shanghai plant, a 143.24% increase year-on-year and 83.38% from June, bringing total output to 93,579 units—an increase of 37.8% year-on-year and the ninth consecutive month of growth.
In the fiercely competitive Chinese EV market, new energy vehicles accounted for 65.1% of new passenger car sales in July, up from 54% a year prior. While Tesla’s Model Y remains a top-seller with over 180,000 units sold in the first half of the year, its strategy of maintaining a premium price point has kept it largely out of the price war that other automakers, including BYD, are engaged in.
The contrasting trends highlight Tesla’s approach of prioritizing exports over domestic sales, which helps to maintain its brand perception in China, even as competitors lower prices to attract buyers. Tesla’s stock has declined 24% year-to-date, trading with a forward price-to-sales ratio of 11.84, above the industry average.
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