Investing.com -- Deliveries from Tesla (NASDAQ:TSLA) Inc.'s Shanghai plant declined for a second consecutive month in November, despite enhanced subsidies from the Chinese government designed to boost electric vehicle (EV) sales.
According to preliminary data from the China Passenger Car Association (CPCA), Tesla shipped 78,856 vehicles in November, a 4.3% drop compared to the same month last year. However, this figure marked a 15.5% increase from October.
Tesla shares fell more than 1% in premarket trading Tuesday.
Tesla, alongside domestic rival BYD Co (SZ:002594)., has introduced additional incentives to attract buyers in China, the world’s largest car market, in a final push to achieve year-end sales targets. The Chinese market remains critical for Tesla’s performance this quarter, with its success there potentially determining whether the company can end 2024 with record-breaking sales.
The EV giant offers a limited-time 10,000 yuan ($1,375.89) discount on outstanding loans for its popular Model Y as it faces intensified price competition led by BYD.
The automaker also extended its zero-interest financing program for certain Model 3 and Model Y vehicles through December, marking the fifth extension since the initiative began in July.
Tesla’s share of China’s electric vehicle market dropped to 6% in October, nearly half of its September level and the lowest in a year, based on CPCA data analyzed by Reuters.
To meet its target of "slight growth" over the 1.81 million vehicles delivered in 2023, Tesla must sell a record-breaking 515,000 vehicles globally in the final quarter of 2024.
Meanwhile, wholesale deliveries of new-energy passenger vehicles in China reached an estimated 1.46 million units in November, a 51% increase compared to the same period last year, according to CPCA data.