Tesla Sales in China Slump as Competition Intensifies
Tesla production in China the world's largest auto market, increased in 2022, but fell in December when domestic automakers improved their performance, according to figures released Thursday.

Tesla sold 56,000 vehicles in China this month which is a decrease by more than 20 percent from the previous year and more than 45 percent lower than the month before. In the entire year, Tesla's Chinese sales increased 50%, according to statistics released through China Passenger Car Association. China Passenger Car Association.

China makes up around 40% of the sales for Tesla. The company's poor performance is a major cause of the rapid decrease in Tesla stock. Tesla's stock fell by about 5 percent Thursday morning.

Tesla is facing increasingly tough opposition from Chinese automakers, such as BYD which offers highly-rated cars for less money and is the number. one electric vehicle manufacturer.

China is considered to be the most important factor in Tesla's ambitions in the world. Contrary to the United States and Europe, general auto sales are growing because a large portion of the population does not have cars, or have only one car. In China, the Chinese government has been heavily promoting electric vehicles as a way to reduce pollution from urban areas, but it has recently cut subsidies.

"When you are not active in the largest market in the world, you are nowhere," Axel Schmidt is a senior managing director at Accenture who manages Accenture's Automotive division, said prior to the publication of sales figures.

Tesla's plant located in Shanghai is considered to be one of the most efficient factories and supplies automobiles to Europe as well as other parts of Asia as well as China. The factory was forced stop operations repeatedly in 2022 due to issues with the supply chain as well as lockdowns due to pandemics.

There are also signs that Tesla was struggling with a slowing the demand for its products in China. Tesla has reduced costs of its automobiles and boasts the company's website to show that cars are available for delivery in just one week, as opposed to waiting for months in the past.

Elon Musk, Tesla's CEO of Tesla has been courting the Chinese government and suggested for instance that Taiwan becomes an administrative special zone for China in the hope of giving the more power to Beijing. However, experts say that Tesla may be a target for tensions between China and the United States and China.

"The most pressing issue currently to Tesla concerns that their demand-side story, particularly from China is showing significant cracks in its armor at the same time that E.V. competition is growing steadily," Daniel Ives, an analyst at Wedbush Securities, wrote in a letter to clients on Wednesday.
http://www.dream11today.com/tesla-sales-in-china-slump-as-competition-intensifies/

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