EV giant Tesla Inc. (TSLA) reportedly sold 71,599 made-in-China vehicles in June, marking a growth of 0.83% from the corresponding period of 2024, after an eight-month losing streak.
Despite the rise in June, the company’s sales every quarter continued to fall, Reuters reported.
Shares of Tesla are, however, up by about 1% in the pre-market session.
Tesla manufactures its Model Y SUV and Model 3 sedan at its factory in Shanghai for sales within the country and exports them to select other markets, such as Europe. Compared to May, China-made Tesla sales rose 16.1% in June.
However, sales of Tesla’s EVs made at its factory in Shanghai dropped 6.8% YoY in the three months from April to June, marking the third quarter of consistent decline.
Competition is mounting for Tesla in the Chinese market. Its biggest rival BYD Co (BYDDF) reported on Tuesday that it sold 382,585 new energy vehicles in June, including 377,628 passenger vehicles, marking a growth of 12%.
Smartphone maker Xiaomi also entered the EV market last year, with its SU7 sedan. The company started taking pre-orders for its YU7 SUV late last month and received over 200,000 orders within three minutes.
While the SU7 is up against Tesla’s Model 3 in China, the YU7 is up against Tesla’s best-selling Model Y. Both Xiaomi models are also priced lower than their respective Tesla rivals.
Tesla is expected to report global delivery numbers later on Wednesday.
Wall Street expects another decline in quarterly deliveries, with the FactSet consensus at approximately 387,000, representing a 13% decrease from the same period last year.
On Stocktwits, retail sentiment around Tesla is trending in the ‘bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high ‘ levels.
TSLA stock is down approximately 26% this year and up around 30% over the past 12 months.
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