Tesla suffered a blow, sales fell again in China
Tesla, one of the big electric vehicle (EV) companies, has suffered a major setback. Shipments from the company’s Shanghai factory in China have fallen for the third time this year. Competition for Tesla is continuously increasing in China and sales of companies like BYD have increased rapidly.
Tesla’s shipments in May declined 6.6 percent year-on-year to 72,573 units, according to data from the China Passenger Car Association. This includes sales and exports in China. However, this is an increase of 17 percent compared to April. Sales of new energy passenger vehicles in China increased by about 35 percent in May to about 9,10,000 units. This is indicating that the demand has strengthened due to the discounts and government subsidies given by EV companies. Billionaire Elon Musk’s Tesla is struggling to maintain growth abroad in China, its biggest market.
BYD’s shipments last month stood at 3,30,488 units. This is an increase of 38 percent compared to the same period last year. Apart from this, sales of Nio Inc, Xpeng and Li Auto have also increased. Tesla has been facing difficulties for the last few months. Despite reducing the prices of electric cars, the company’s sales are not increasing. For this reason Musk has decided to make layoffs in the company. Nearly 6,000 workers have been laid off since the beginning of this year. The company has laid off workers from software, service and engineering departments. This is a sign of a major change in the company’s strategy.
Musk has said that this will reduce Tesla’s costs and make the company’s international business balanced. Tesla plans to reduce its total workforce by about 10 percent. In the first quarter of this year, the company’s profit declined to approximately $1.13 billion. In the same period last year it was worth $2.51 billion. A few months ago, Tesla had reduced the prices of some of its models in America by $ 2,000. The company’s EV deliveries declined by about 8.5 percent in the first quarter.
