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Tesla’s sales of China-made electric vehicles hit its third straight month of year-over-year declines in June, as competition in the world’s largest auto market remains fierce.
The Austin, Texas-based automaker sold 71,007 China-made EVs last month, a 24.2% decrease compared to last year, according to preliminary data from China Passenger Car Association (CPCA) released Tuesday. That’s a slight dip from Tesla’s 72,573 units sold in May, but deliveries for both months were down compared to the same month a year earlier.
Tesla last month began delivering the updated $46,290 Model 3 Performance about two weeks ahead of schedule. That comes as the automaker slashes production of the aging Model Y to address weaker demand for its best-selling car and increases Model 3 production.
As part of a series of recent price adjustments and incentives to draw in new customers, Tesla on Monday extended its zero-percent interest loan offer to July 31, CNEV Post reports. The incentive was introduced in April and was initially meant to end on June 30 as part of a push to boost sales.
Tesla, like its fellow automakers, also benefitted from Beijing’s new trade-in program, which gives a one-time subsidy of as much as 10,000 yuan ($1,380) to consumers who trade in their old models and buy a new car. Nio said it delivered 21,209 new-energy vehicles last month, a 98.1% year-over-year increase, while Xpeng recorded a 24% increase to 10,668 EVs. Li Auto sold 47,774 vehicles in June, an almost 47% increase.
Tesla’s chief rival BYD sold 341,658 new energy vehicles in June, a 28% increase compared to a year earlier, including 145,179 battery EVs. The company has sold 426,039 battery EVs over the past three months, according to its monthly reports, closing the gap between it and Tesla.
Later Tuesday morning, Tesla is expected to report full deliveries for the second quarter. Wall Street expects 436,000 deliveries, a more than 9% decrease compared to 2023, according to FactSet estimates. Several analysts have lowered their expectations to between 415,000 and 420,000 units sold.
In recent months, Tesla has been lowering investors’ expectations, emphasizing that it’s preparing for its next growth phase and cutting costs. In January, the company warned that overall deliveries in 2024 would be “notably lower” than 2023, when the company recorded a 38% increase and sold 1.8 million EVs.