"Tesla Inc. ( NASDAQ: TSLA) sales in China dropped to 26,006 in October, the lowest total in three years. That is down almost 38% from the same period of last year. There was a silver lining for Tesla. The China Passenger Car Association reported that exports of Tesla's China-made cars rose to a two-year high of 35,491. Tesla's market share in China slipped to 3.2%, also a three-year low."
"Its competition has grown rapidly, led by Chinese giant BYD. By some estimates, there are 100 electric vehicle (EV) companies in China, many of which will not survive. In the meantime, the brutal competition has created a price war. Tesla already has problems in the world's two other largest car markets. In most months this year, EU registrations (the way the European Union measures sales) have declined by high double-digit percentages in some nations."
"Yet, poor sales across the three large global markets have not hurt Tesla shares. They are up almost 250% in the past five years. Its market cap of $1.5 trillion makes it the world's 10th most valuable company. Musk has convinced investors to overlook poor sales. He claims that Tesla is no longer primarily a car company, but rather an artificial intelligence and robotics company. Based on his robot and robotaxi plans, this should soon be clear."
Tesla sold 26,006 vehicles in China in October, the lowest monthly total in three years and nearly 38% below the year-ago level. China-made Tesla exports rose to 35,491, a two-year high. China market share slipped to 3.2% as competition surged, led by BYD and roughly 100 EV startups that have intensified a price war. EU registrations declined by high double-digit percentages in some countries while Volkswagen and other local firms gained EV sales. U.S. EV market share fell to below 45% in Q3 from a peak near 80%. Share value and a $1.5 trillion market cap remain strong as leadership emphasizes AI and robotics.
Read at 24/7 Wall St.
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