Can Tesla dominate China? Despite the federal government pouring billions into Elon Musk’s company, the brand has failed to capture additional market share in the world’s second-largest economy.
And don’t think there isn’t a demand for new energy vehicles. Last month, sales for electric vehicles and battery-powered surged 67.7 percent.
As a result, Tesla slashed prices for its longer-range and performance Model S by 23,000 yuan ($3,411) for each model.
GLJ Research’s Gordon Johnson wrote:
“TSLA sold 11,329 made in China (“MIC”) Model 3 cars in Sep. 2020, bringing quarterly totals to 34,333. This compares to 30,494 in 2Q20, a growth of +12.6%, while production grew 13.2%, and unsold inventory roughly doubled q/q (i.e., up +75.5% q/q). Interestingly, while the Chinese NEV market grew 26% m/m in Sep. 2020 (link), TSLA’s MIC M3 sales were down -2% over the same time frame (TSLA’s Model 3 MIC market share fell from 10.5% in Aug. to 8.3% in Sep.).”
So, who is dominating the Chinese market? Surprisingly, GM. General Motors sold more than double the amount of electric vehicles in China than Tesla did in September.
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