Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc.'s (NASDAQ:TSLA) China sales rose both year-over-year and month-over-month in August, thanks to price cuts amid a tough macroeconomic and competitive environment, according to preliminary data released by the China Passenger Car Association.
Tesla August Sales Rise
Tesla sold 84,159 made-in-China electric vehicles in August, marking a 9.4% increase from the 76,965 units it sold in the year-ago period, Reuters reported.On a month-over-month basis, sales climbed 30.92% from the 64,285 units sold in July.
CPCA's preliminary estimates do not give a break-up between exports and domestic sales. Tesla typically produces for the domestic market in the second half of the quarter. More detailed results giving the split will likely be released in the following week.
The Elon Musk-led company's Giga Shanghai factory manufactures both Model Y and Model 3 EVs.
Tesla Vs. Local Competition
Tesla's August performance comes against the backdrop of strong sales reported by domestic EV manufacturers, including Nio, Inc. (NYSE:NIO), XPeng, Inc. (NYSE:XPEV), Li Auto, Inc. (NASDAQ:LI) and Warren Buffett-backed BYD Company Ltd. (OTC:BYD).Tesla Vs. Domestic Manufacturers
| Aug. Deliveries (in units) | Y-o-Y Change | M-o-M Change | |
| Tesla | 84,159 | 9.4% | 30.9% |
| Nio | 19,329 | 81% | (-5.5%) |
| XPeng | 13,690 | 43% | 24% |
| Li Auto | 34,914 | 663.8% | 2.3% |
| BYD | 145,627* | 76.1% | 8.1% |
It is to be noted here that the Chinese manufacturers deliver most of their sales domestically, while Tesla’s MIC vehicles are sold in China as well as exported.
Price Cuts Sting
Tesla’s stock has been stuck in a rut since it reported its second-quarter results on May 19, as investors fear a further hit to margins from the multiple price cuts the company has been announcing.Prospective buyers have been holding off on purchases in anticipation of more price cuts in the future.
Last week, the company sharply lowered the prices of its Model S, and X vehicles in the U.S., China, and some European markets. The move came after the prices of some variants of the Model Y electric SUVs were lowered in China.
Analysts and Tesla bulls are optimistic of the Model 3 refresh that was launched in China, the Middle East and Europe last week. The commercial launch of the Cybertruck is also widely expected to give a big volume lift through sales of the EV pickup truck, as well as the halo effect it is expected to have on the rest of the company's vehicle lineup.
Tesla closed Friday's session down 5.06% at $245.01, according to Benzinga Pro data, amid negative reaction to the Model S and Model X price cuts.
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