Deliveries from Tesla’s Shanghai factory have fallen for eight straight months as its Chinese rivals amp up the pressure, prompting the US carmaker to offer more incentives to lure customers.
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For the first five months of the year, Gigafactory deliveries were down 17.6 per cent from a year earlier to 292,875 vehicles.
“Tesla is expected to face a downward spiral in China as domestic carmakers launch more new models to lure customers away from the Model 3 and Model Y,” said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto. “At the same time, Chinese rivals are offering steep discounts or selling their new models with attractive prices, making it difficult for Tesla to retain its market share.”
Since 2024, Chinese electric vehicle (EV) makers like BYD and Xpeng have rolled out cheaper new models to take on Tesla on the mainland, the world’s largest auto market.
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Xpeng’s Mona 03 – a midsize, fully electric sedan that hit the market in August – is priced from 119,800 yuan (US$16,629) to 159,800 yuan. Tesla’s Model 3 starts at 235,500 yuan.
