Shipments from Tesla Inc.’s Shanghai facility dropped in April, a sign consumers may be casting around for other electric vehicles as manufacturers across the country drop their prices.
(Bloomberg) — Shipments from Tesla Inc.’s Shanghai facility dropped in April, a sign consumers may be casting around for other electric vehicles as manufacturers across the country drop their prices.
Deliveries of China-made Model Y and Model 3 cars fell 14.7% from March to 75,842 units, according to preliminary data that China’s Passenger Car Association released Friday. Year-on-year the numbers were much higher, as Tesla suspended production and all but halted shipments due to Shanghai’s Covid lockdown last April.
Although PCA didn’t break down local deliveries and exports, Tesla typically focuses on shipping cars to Europe and other parts of Asia at the beginning of each quarter, then delivers to Chinese customers in the latter part of each three-month cycle. The plant’s current monthly production rate is around 90,000 units, based on annual output calculations.
Tesla triggered a slew of discounts and incentive offerings from other carmakers when it slashed prices of its locally made EVs by as much as 14% at the beginning of the year. Rivals including China’s Xpeng Inc. and Germany’s Volkswagen AG followed suit and have accelerated product launches.
At last month’s Shanghai auto show, dozens of new-energy vehicle models were on display, including Volkswagen’s ID. 7 SUV and BYD Co.’s premium Yangwang U9. Beijing-based Li Auto Inc. pledged to extend its product lineup from five to 11 models by 2025, including high-voltage pure-electric cars. Nio Inc. and Geely Holding Group Co.’s Zeekr brand also are eyeing further penetration overseas.
The intensity of competition in China’s car market has some analysts and investors concerned about Tesla CEO Elon Musk’s comments that seemed to indicate he’ll keep cutting prices to stoke demand, even after markdowns earlier this year took a toll on profitability. Tesla has announced several price hikes — albeit modest ones — in both US and China in recent weeks.
Separately, PCA said China’s new-energy passenger vehicle wholesales in April were estimated at 600,000 units, broadly in line with the previous month.
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