Tesla sales on the decline in key markets

Tesla faced significant sales declines across major global markets in February, according to recent industry data.

In China, wholesale sales dropped to 30,688 units – a 49-percent year-on-year and 51-percent month-on-month decrease.

This is the first time Tesla's monthly sales in China have fallen below 31,000 units (excluding April 2022 in the height of COVID influence) since local production began, hitting a low in more than two years.

The decline was attributed to the reduced production of older models, particularly the Model Y, which faces challenges both domestically and in exports. The launch of the refreshed Model Y is expected to impact Tesla's global strategy.

In China, domestic brands are increasingly dominating the new-energy vehicle (NEV) market.

In February, domestic brands accounted for 70 percent of NEV sales, while Tesla's market share fell to 3.9 percent, down 4 percentage points year on year.

Analysts note that companies such as BYD, Huawei, Xpeng, and Li Auto are reshaping consumer preferences with advanced technology and competitive pricing, putting pressure on Tesla's premium model.

Beyond China

In Germany, Tesla's sales plummeted 76 percent year on year to 1,429 units, while in France, sales dropped 26 percent to 2,395 units.

In the US, Tesla has seen four consecutive months of negative growth. Analysts cite increased competition, slow product updates, and controversies surrounding CEO Elon Musk as key factors behind the decline.