Tesla Stock Plummets Amidst Slump in China Deliveries
Overview:
Tesla (TSLA) faced a challenging week with a weekly loss of over 10% due to a reported decline in China deliveries. Chinese competitor BYD outperformed, experiencing a significant sales surge.
China Deliveries Impact:
According to the China Passenger Car Association, Tesla's China sales fell sharply by 11.5% year-over-year in January. In contrast, BYD sales exhibited a robust 47% annualized growth. Tesla's Model 3 and Model Y vehicles produced in China saw deliveries decline by 32.6% compared to December.
Sales Incentives and Price Cuts:
To address declining sales, Tesla implemented a 0% interest plan in January and reduced vehicle prices in China and other markets. However, these measures have not yet yielded significant results.
Sales Decline in Europe:
Tesla's sales in Germany declined to their lowest level since 2021. Slumps were also reported in other European markets, raising concerns about the impact of CEO Elon Musk's political involvement on potential buyers.
Suspension of Federal Funding:
The Department of Transportation announced the suspension of federal funding for electric vehicle charger infrastructure. This move may hinder the widespread adoption of EVs, as charging station availability is a key concern. Tesla has reportedly received significant funding through this program.