Tesla's China retail sales fell 12% in August, the third straight month of year-over-year declines in the world's largest car market. The company is leaning harder on exports from its Shanghai plant and fresh buyer incentives to offset the slide, while its stock swings on Cybercab robotaxi headlines back home.
Tesla sold 50,047 vehicles in China last month, according to data from the China Passenger Car Association released Tuesday. That marks a third consecutive month of year-over-year declines, even as sales jumped 84% from July's total of 27,249.
China remains a tough market
China is the world's largest car market, but it is also its most competitive EV market, with dozens of companies releasing new models with updated features. Tesla has struggled to keep pace this year with rivals including BYD, Xiaomi, Geely and Leapmotor. Tesla's retail sales in China through August total 316,251 EVs this year, per CPCA data.
To help move inventory, Tesla on Monday announced cash incentives up to 10,000 yuan ($1,475) for customers buying Model 3 or Model Y inventory vehicles before Sept. 30.
Exports pick up the slack
However, Tesla's Shanghai Gigafactory also makes cars exported to other parts of Asia, Europe and more recently Canada. Like its Chinese rivals, Tesla has had to rely on export markets to make up for declining domestic sales. In August, exports jumped 39% from a year earlier to 36,119 EVs, though that was down 46% from July's record export level of 66,330. Tesla's total exports from the Shanghai factory from January through August rose 115% compared with last year, and exports now make up 51% of Tesla's China wholesales, up from 30% a year earlier.
Stock swings on Cybercab news
Tesla stock is up about 0.3% ahead of Tuesday's open, according to MarketSurge, after a week in which shares rose 1.5%. Shares were buoyed last week by news that Tesla had launched its Cybercab robotaxi in Austin, Texas. But the stock then retreated 6% on Friday after regulators opened a probe into whether the Cybercab had the proper approvals.
However, shares are down over 20% this year, though they have climbed since plummeting 18% the week of Tesla's disappointing second-quarter earnings. In the six weeks since, shares rose as much as 25%. Shares remain below their 50-day line, with the 200-day moving average above that.
Source: Investor's Business Daily
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