Tesla’s China Sales Decline Amidst Intense EV Competition
Tesla's China-made electric vehicle sales fell 15% year-over-year in May, marking an eighth consecutive monthly decline. The company sold 61,662 units, a slight sequential improvement from April but still reflective of broader challenges in the world's largest EV market.
Domestic rival BYD continues to outperform, posting 14.1% annual growth in May. Tesla's aging lineup and Elon Musk's polarizing public persona appear to be weighing on demand, particularly in European markets served by its Shanghai export hub.
In response, Tesla has revived customer referral incentives—a tactic previously deployed during demand slowdowns. The Shanghai factory's output remains crucial, having produced 292,875 vehicles year-to-date despite the 17.6% annual decline.
