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Economic Times
15-05-2025
- Automotive
- Economic Times
Tesla rejoins the $1 trillion club, but troubling China data sparks investor doubts about what's really driving growth
Sharp Drop in Tesla Sales in China Live Events Stagnant Product Line Rising Competition from Chinese EV Brands FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Tesla might have regained its $1 trillion market capitalization this week, but a worrying trend is starting to appear in China, Tesla's most significant latest insurance data from China showed a decline in Tesla's weekly sales, triggering new fear among investors already on edge about the company's performance, as per a the week ended May 11, Tesla delivered only 3,070 cars in China, 58% fall from the prior week, and 69% below from a year ago, reported Fortune. Most of that drop was in the Model Y, Tesla's best-selling model worldwide, which reported just 1,270 units sold, its lowest point since it went on sale in China, according to the a firm that has China as its sole largest market, which is larger even than the United States, these figures are a red flag. Roland Pircher, who regularly tracks Tesla's international EV sales, said, 'Something is definitely going on in China,' quoted READ: Warren Buffett breaks hearts and silence, reveals the deeply personal reason behind his emotional exit from Berkshire Hathaway CarNewsChina reported that Tesla's plan to stick with the same lineup of vehicles and provide just incremental updates is beginning to fail in China. Regardless of how many incentives or discounts the company includes, it's increasingly difficult to persuade buyers, particularly those who have been waiting for a more thrilling update of the Model Y, as per the report. Numerous potential buyers do not find it to be of compelling value to purchase what is ultimately a five-year-old vehicle, as per Chinese companies such as Xpeng G6, Onvo L60, Li Auto L6, BYD Sealion 7 and Zeekr 7X are performing way better than Tesla because the domestic brands innovate at 'China speed', according to the report. This means that these companies have reduced development cycles on new models to just two to three years from the industry standard of six to seven, as per READ: Working 7 days a week comes with solid perks: Nvidia executives earn millions - here's how much CEO Jensen Huang pockets CarNewsChina wrote, 'Competition in the Middle Kingdom is simply too much,' adding, 'Young Chinese buyers don't have the fear of buying Chinese products like their parents, who still remember the 90s. The lack of new models is finally hurting Tesla in China.'Yes. Tesla's sales dropped due to declining demand, especially for the Model Y, which saw a sharp decrease in sales, as per automakers are speeding up their innovation cycles to just 2-3 years, while Tesla takes much longer to refresh its models.
Time of India
15-05-2025
- Automotive
- Time of India
Tesla rejoins the $1 trillion club, but troubling China data sparks investor doubts about what's really driving growth
Tesla might have regained its $1 trillion market capitalization this week, but a worrying trend is starting to appear in China, Tesla's most significant market. Sharp Drop in Tesla Sales in China The latest insurance data from China showed a decline in Tesla's weekly sales, triggering new fear among investors already on edge about the company's performance, as per a report. For the week ended May 11, Tesla delivered only 3,070 cars in China, 58% fall from the prior week, and 69% below from a year ago, reported Fortune. Most of that drop was in the Model Y, Tesla's best-selling model worldwide, which reported just 1,270 units sold, its lowest point since it went on sale in China, according to the report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now For a firm that has China as its sole largest market, which is larger even than the United States, these figures are a red flag. Roland Pircher, who regularly tracks Tesla's international EV sales, said, 'Something is definitely going on in China,' quoted Fortune. ALSO READ: Warren Buffett breaks hearts and silence, reveals the deeply personal reason behind his emotional exit from Berkshire Hathaway Live Events Stagnant Product Line CarNewsChina reported that Tesla's plan to stick with the same lineup of vehicles and provide just incremental updates is beginning to fail in China. Regardless of how many incentives or discounts the company includes, it's increasingly difficult to persuade buyers, particularly those who have been waiting for a more thrilling update of the Model Y, as per the report. Numerous potential buyers do not find it to be of compelling value to purchase what is ultimately a five-year-old vehicle, as per CarNewsChina. Rising Competition from Chinese EV Brands Meanwhile, Chinese companies such as Xpeng G6, Onvo L60, Li Auto L6, BYD Sealion 7 and Zeekr 7X are performing way better than Tesla because the domestic brands innovate at 'China speed', according to the report. This means that these companies have reduced development cycles on new models to just two to three years from the industry standard of six to seven, as per CarNewsChina. ALSO READ: Working 7 days a week comes with solid perks: Nvidia executives earn millions - here's how much CEO Jensen Huang pockets CarNewsChina wrote, 'Competition in the Middle Kingdom is simply too much,' adding, 'Young Chinese buyers don't have the fear of buying Chinese products like their parents, who still remember the 90s. The lack of new models is finally hurting Tesla in China.' FAQs Did Tesla's sales drop in China? Yes. Tesla's sales dropped due to declining demand, especially for the Model Y, which saw a sharp decrease in sales, as per Fortune. How fast are Chinese automakers innovating compared to Tesla? Chinese automakers are speeding up their innovation cycles to just 2-3 years, while Tesla takes much longer to refresh its models.
