Tesla, Inc. (NASDAQ:TSLA) witnessed a notable increase in its sales performance in China for the month of August. Preliminary data from the China Passenger Car Association indicates that the company sold 84,159 electric vehicles (EVs) produced in China during the month. This figure reflects a significant 9.4% rise compared to the 76,965 units sold during the same period last year, as reported by Reuters.
Furthermore, on a month-over-month basis, Tesla’s sales surged by 30.92%, with August sales outpacing the 64,285 units sold in July.
It’s worth noting that the China Passenger Car Association’s initial estimates do not provide a breakdown of sales between exports and domestic markets. Typically, Tesla primarily focuses on the domestic market in the latter part of the quarter. More detailed sales data, including this breakdown, is expected to be released in the coming week.
Tesla’s manufacturing facility in Giga Shanghai is responsible for producing both Model Y and Model 3 EVs.
Tesla’s strong performance in August occurred amidst fierce competition from local EV manufacturers such as Nio, Inc. (NYSE:NIO), XPeng, Inc. (NYSE:XPEV), Li Auto, Inc. (NASDAQ:LI), and Warren Buffett-backed BYD Company Ltd. (OTC:BYD). It’s worth noting that Chinese EV manufacturers primarily target the domestic market, whereas Tesla’s domestically produced vehicles are sold both within China and internationally.
Tesla’s recent price cuts have been a point of concern for investors, impacting the company’s stock performance since it reported its second-quarter results on May 19. Prospective buyers have been delaying purchases, anticipating further price reductions.
Notably, Tesla recently lowered the prices of its Model S and Model X vehicles in the U.S., China, and select European markets. This decision followed earlier price reductions for certain variants of the Model Y electric SUV in China.
Despite these challenges, analysts and Tesla enthusiasts remain optimistic about the impact of the Model 3 refresh, which was recently launched in China, the Middle East, and Europe. Additionally, the upcoming commercial launch of the Cybertruck is expected to generate significant sales volume for the EV pickup truck and have a positive halo effect on the rest of Tesla’s vehicle lineup.
On the stock market, Tesla closed the Friday session with a 5.06% decline, reaching a closing price of $245.01, according to data from Benzinga Pro. This drop in stock price was attributed to the reaction to the price cuts for the Model S and Model X.