Tesla Struggles in China as BYD’s Growth Outpaces Shipments

Tesla, the American electric vehicle company, is losing its competitiveness in China, the world's largest EV market. The rapid rise of China's homegrown EV manufacturer, BYD, is cited as a key reason.

According to Bloomberg News on the 10th, Tesla's factory shipments in China have declined for five consecutive months, with February's shipments plunging 49% year-over-year to just 30,688 units.

This marks the lowest level since July 2022, during the COVID-19 pandemic. While Tesla attributed the drop to modifications in some production lines at its Shanghai factory, sales had already been on a downward trend.

In terms of market share within China’s EV market, Tesla holds a mere 2.6%, whereas BYD is growing toward 15%. Since ceasing production of internal combustion engine vehicles in March 2022, BYD has focused on the EV and hybrid markets, achieving rapid expansion.

In February alone, BYD sold over 318,000 vehicles, reflecting a 161% year-over-year increase, while its overseas sales also reached a record high of 67,025 units.

Tesla's struggles are not confined to China but are evident in the global market as well.

In Germany, Tesla’s sales plummeted 76% last month to just 1,429 units. Industry experts attribute Tesla's weakening competitiveness to high prices and a lack of new models. The average price of Tesla’s Model Y and Model 3 remains relatively high at around $33,500.

Meanwhile, BYD's flagship model, the Song Plus, saw an 8-18% price reduction, bringing its price down to as low as $21,000. Additionally, its compact EV, the Seagull, has gained popularity with an affordable price of $9,900, selling 82,435 units this year.


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Tesla Struggles in China as BYD’s Growth Outpaces Shipments