Tesla China Shipments Fall Again As Competition Heats Up

Shipments from Tesla Inc.’s Shanghai factory slipped back into decline on intense competition in China and global trade uncertainties.

The EV maker shipped 67,886 units from the plant in July, according to preliminary data released by China’s Passenger Car Association on Monday, which didn’t break the figures down into exports and domestic sales. That’s a 8.4% decrease from a year earlier.

Tesla’s China plant has seen shipments decline in six of the seven months for which data is available this year. That’s due mainly to competition from local rivals such as BYD Co. and Xiaomi Corp., which has launched the YU7 sport utility vehicle that aims to take on the Model Y, and trade-related uncertainties.

Tesla, which has a limited line-up in the world’s largest EV market, is preparing to launch a longer, six-seat version of the Model Y SUV in China. 

Overall sales of EVs and hybrids in China grew 25% in July to 1.18 million units, defying what’s typically a slow period for car sales.

Globally, the company continues to face slumping sales as Chief Executive Officer Elon Musk’s foray into politics and controversial rhetoric is affecting consumer demand from Europe to the US.