Tesla’s China-made electric vehicle (EV) sales for April declined by 14.7% to 75,842 from March, according to data released by the China Passenger Car Association (CPCA). However, the figure was substantially higher compared to the same period last year, which saw a delivery of only 1,512 China-made Model 3 and Model Y cars, as the city of Shanghai was under COVID-19 lockdown. BYD Co’s Dynasty and Ocean series of EVs and hybrids sold 209,467 units in April, up 1.6% from March, the CPCA data showed. CPCA is expected to release detailed China car sales figures for April next week.
Tesla’s price cuts in several markets globally led to a price war in China, with more than 40 local and international car brands joining in. The price cuts have led to a decrease in earnings for automakers. Tesla reported a 24% plunge in net income in the first quarter, even though its quarterly global deliveries reached an all-time high. However, the company raised the prices of its two top-selling models, Model Y and Model 3, by up to $290 in Canada, China, Japan, and the United States on Monday. On Friday, it increased prices for its new Model S and Model X vehicles in China by 19,000 yuan ($2,751).
Tesla is planning to export a version of the Model Y to Canada this year from its Shanghai factory, marking the first time it will ship cars to North America from China, according to a production memo seen by Reuters and a source with direct knowledge of the plan.
With the recent developments in Tesla’s sales and pricing, it is essential to keep an eye on the electric vehicle market. The following paragraphs provide an in-depth analysis of the recent developments.
Tesla’s Sales Figures in China
According to the CPCA data, Tesla’s China-made EV sales for April 2021 stood at 75,842, which is a 14.7% decrease from March 2021. However, compared to April 2020, the figure is a massive jump, as the automaker delivered only 1,512 China-made Model 3 and Model Y cars in the world’s largest auto market. The COVID-19 lockdown in Shanghai during that time had severely impacted the automotive industry.
Despite the decline in sales in April, Tesla’s China-made Model Y is gaining traction in the country. The company’s vehicle registration data for April showed that the Model Y is outselling the Model 3. According to CPCA data, the automaker delivered 12,728 China-made Model Ys in April, up from 10,151 units in March, while Model 3 deliveries declined by 27% to 11,623 units in April from 15,484 units in March.
Price Cuts in Global Markets
Tesla’s price cuts in several markets globally have impacted automakers’ earnings. Despite a fresh all-time high in quarterly global deliveries, Tesla reported a 24% plunge in net income in the first quarter of 2021. The price cuts initiated a price war in China, with over 40 local and international car brands joining in.
Tesla’s Price Hike
This week, Tesla raised the prices of its two top-selling models, Model Y and Model 3, by up to $290 in Canada, China, Japan, and the United States. On Friday, it increased prices for its new Model S and Model X vehicles in China by 19,000 yuan ($2,751).
Tesla’s price hikes come after several automakers, including General Motors and Ford, have raised the prices of their electric vehicles due to the rising cost of raw materials such as copper and aluminum.