Tesla's China-Made Electric Vehicle Registrations Plunged 24% In July

New registrations of Tesla Inc's TSLA Shanghai-made electric vehicles slumped 24% month-on-month in China in July, according to a state-backed industry body.

What Happened: The Elon Musk-led automaker saw 11,456 EV registrations in the country in the month, according to data from China Automotive Information Net, as earlier reported by Bloomberg.

This was a 24% decrease over the 14,976 units that were registered in June, as per CAIN data.

It’s worth noting that June was a record month for Tesla in China. The automaker had overall 61,217 vehicles registered in the country as of July-end, according to CAIN.

Why It Matters: The registrations for the Palo Alto-based company’s vehicles declined at a time when it faces increased competition from both local and global automakers in China.

Registrations for electric vehicles made by local startup Nio Inc. NIO quadrupled to 3,533 in July, according to CAIN.

Established players, including Bayerische Motoren Werke AG BAMXF and Mercedes parent Daimler AG DDAIF, are also gearing up to launch electric models, Bloomberg noted.

Chinese EV maker Li Auto Inc. LI raised $1.1 billion in its New York initial public offering late last month.

Tesla has been actively hiring in China as it prepares to start Model Y production in the country, according to a Reuters report.

Price Action: Tesla shares closed 1.83% higher at $1,650.71 on Friday, and traded about 0.3% lower in the after-hours session.