Tesla (NASDAQ:TSLA) saw its China-made electric vehicle sales decline in January, selling 63,238 units, an 11.5% drop from the 71,447 sold a year earlier, according to the China Passenger Car Association.
The decline comes as domestic rivals, particularly BYD (BYDDF), strengthen their market position. BYD reported 296,446 sales of electric and plug-in hybrid vehicles in January, up 47% year-over-year but down nearly 42% from the prior quarter.
Xpeng (XPEV) also recorded a sales increase. Tesla has responded to the intensifying competition by reducing the price of its Model Y and extending a zero-interest five-year loan promotion through January. The company’s market share in China has declined from 7.8% in 2023 to 6% over the first 11 months of last year.
Beyond China, Tesla’s sales struggles extended to Europe. Registrations in Germany fell 59% in January, while sales declined 63% in France and 12% in the U.K. Meanwhile, Tesla has raised the price of its Model X variants in the U.S. by $5,000.
This article first appeared on GuruFocus.
