Tesla July China Shipments Plunge 69% MoM... Export Volume Increases Fivefold

Tesla Model 3 [Photo by Reuters]

[Asia Economy Reporter Park Byung-hee] It has been confirmed that the shipment volume of Tesla Motors, the U.S. electric vehicle manufacturer, in the Chinese market sharply declined last month. As Tesla's shipment volume plummeted, it became similar to that of emerging Chinese electric vehicle companies such as Li Auto and Xiaopeng. Competition in China, the world's largest electric vehicle market, is becoming increasingly fierce.

According to Bloomberg News on the 10th (local time), Tesla's shipment volume in the Chinese market last month was recorded at 8,621 units, a 69% decrease compared to June.

Tesla built its first overseas production plant in Shanghai, China, and began full-scale production from early last year. Tesla sells vehicles produced at the Shanghai plant within China but also exports them to Europe, Japan, Australia, New Zealand, Singapore, Hong Kong, and others. Especially, it mainly exports to Europe. Tesla refers to the Shanghai plant as its primary export hub.

In the case of last month, while the shipment volume within China decreased, export volume significantly increased. Last month's export volume nearly quintupled to 24,347 units. Thanks to the significant increase in exports, the total shipment volume from the Shanghai plant in China in July was 32,968 units, showing only a 0.6% decrease compared to June.

In this regard, there is also an analysis that Tesla increased exports due to overproduction in China. Tony Sacconaghi, an analyst at Bernstein, said, "Currently, demand for Tesla cars in China appears to be good," and added, "Due to production issues, Tesla seems to have lowered prices and increased exports." He further noted, "Competition with Chinese companies is intensifying, so it may be difficult for Tesla to maintain its current market share and profitability."

Bloomberg reported that Tesla's shipment volume in China sharply declined, reaching a level similar to that of Chinese electric vehicle companies for the first time. Li Auto's shipment volume in July was 8,589 units, nearly the same as Tesla's. Xiaopeng and Nio's shipment volumes were 8,040 units and 7,931 units, respectively.

China is Tesla's largest market. Last year, 30% of the 500,000 vehicles Tesla sold were sold in the Chinese market.

However, Tesla faced unexpected setbacks in China this year. At the Shanghai Auto Show in April, a Tesla owner staged a sudden protest, claiming the brakes were faulty. This escalated into a partial boycott movement, causing Tesla's sales in China to sharply decline in April. Chinese regulatory authorities also began inspecting Tesla's safety and quality issues.

According to Bloomberg, Tesla's shipment volume in China was about 11,300 units in April, then recovered to 21,900 units in May and 28,100 units in June.

Regarding the sharp decline in shipment volume in July, there is also an analysis that Chinese consumers delayed purchases while waiting for Tesla vehicles with reduced prices.

Last month, Tesla unveiled a new Model Y sport utility vehicle (SUV) with significantly reduced prices. When government subsidies are applied, the base price of the new Model Y SUV starts at 276,000 yuan, which is 20% cheaper than the existing Model Y. Tesla also recently lowered the base price of the Model 3 standard version to 235,900 yuan, 15,000 yuan less than before. Nio's ES6 SUV base price is 358,000 yuan, and Li Auto's Li One base price is 338,000 yuan, giving Tesla price competitiveness.

Tesla stated that by lowering the prices of the Model Y and Model 3, even owners of conventional internal combustion engine vehicles may find electric vehicles more attractive.

This content was produced with the assistance of AI translation services.