Tesla's Market Share In China Drops In June As EV Sales Drop By More Than 20% Over 2023

EV giant Tesla Inc TSLA reportedly sold only about 60,000 Shanghai-made vehicles in China in June, marking a near 20% drop year-on-year.

What Happened: Tesla sold 71,007 made-in-China vehicles in June, CnEVPost reported, citing data from the China Passenger Car Association (CPCA). However, 11,746 of these were for export markets, implying that only 59,261 vehicles were sold in the country, or about 20% lower than in June 2023.

Tesla sold 74,212 vehicles in China in June 2023.

Tesla’s share of China’s new energy vehicle (NEV) market, which includes both battery electric vehicles and plug-in hybrids, fell to 6.92% in June, down from 11.16% last year.

However, on a sequential basis, Tesla’s sales in China are up 7.33% from May, when the Elon Musk-led company sold 55,215 vehicles.

Retail sales of new energy vehicles, however, totaled 856,000 units in the country last month, marking a jump of 28.6% year-on-year, the report said.

Why It Matters: Throughout the quarter, Tesla sold 205,747 made-in-China vehicles, of which 145,897 were sold in the country. The remaining were exported, a majority to Europe, the largest export market for Tesla vehicles made in China.

Tesla’s gigafactory in Shanghai manufactures Model 3 and Model Y for sale in the country and export. According to Tesla’s first-quarter earnings report, its factory in Shanghai has an annual production capacity of over 950,000 units, its highest capacity across gigafactories.

In comparison, Giga Texas has an installed annual vehicle capacity of only 250,000 Model Ys and 125,000 Cybertrucks.

Globally, Tesla delivered 443,956 vehicles in the second quarter, marking a 4.8% drop from last year but still beating the consensus estimate. 

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