Tesla's shares were more than 7% on Monday** after its sales in China fell in February and could face a slowdown during the Lunar New Year holiday.
Declining sales in Tesla's key markets have dimmed the outlook for Tesla's global deliveries at a time when the top EV maker is battling declining demand and increased competition, dragged down by a lack of entry-level vehicles and an aging lineup.
Tesla sold 60,365 Chinese-made vehicles in February, down 19% year-on-year and the lowest sales since December 2022, according to the China Passenger Car Association. Tesla's Shanghai factory produces Model Y and Model 3 electric vehicles for the local market, Europe and other countries, accounting for more than half of Tesla's global deliveries last year.
Tesla's share price is ***72% to 188$14, about 24% since the beginning of the year**.
Last week, Tesla unveiled new incentives, including an insurance subsidy (8,000 yuan), to attract consumers in the automotive market.
BYD on Monday unveiled a new version of its best-selling car, **below the final of its discontinued predecessor**, intensifying the battle with rivals. BYD's February sales also fell 37% year-on-year to 122,311 units.
In the U.S., Tesla this month is offering 5,000 free Supercharging miles to customers who trade in to get a new Tesla car by March 31. In February, Tesla temporarily lowered the prices of some Model Y models in the United States.