Tesla’s (TSLA) sales of its EVs manufactured in China fell 4.3% year-over-year to 78,856 units in November, according to data from the China Passenger Car Association (CPCA). Furthermore, the deliveries of the EV major’s China-made Model 3 and Model Y rose by 15.5% compared to October, signaling a rebound.
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TSLA Is Facing the Heat from BYD
Meanwhile, Tesla’s Chinese competitor BYD (OTC:BYDDY) continued to race ahead, achieving record-breaking monthly sales. BYD’s passenger vehicle sales surged 67.2% year-over-year to 504,003 units in November. Notably, the company’s shipments of its cars to international markets comprised 6.1% of its total sales, according to a company filing.
TSLA Has Ramped Up Its Incentives in China
In order to claw back its market share in China, Tesla has introduced aggressive year-end incentives in the country. The automaker is offering a limited-time RMB10,000 ($1,375.89) discount on loans for its top-selling Model Y. Additionally, Tesla has extended its zero-interest financing offer for select Model 3 and Model Y vehicles through December, making it the fifth extension of this offer since the program’s launch in July.
However, it remains to be seen to what extent TSLA’s incentives will work in China. According to Reuters’ analysis of CPCA data, its share of the Chinese EV market fell to 6% in October—nearly half of September’s figure and the lowest level in a year.
What Is the Target Price for TSLA?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 14 Holds, and nine Sells. Over the past year, TSLA has increased by more than 50%, and the average TSLA price target of $233.67 implies a downside potential of 34.6% from current levels.
