Tesla’s (NASDAQ:TSLA) October Sales in China Fall Amid Stiff Competition
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Tesla’s (NASDAQ:TSLA) October Sales in China Fall Amid Stiff Competition

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Tesla’s sales of China-made EVs declined in October, according to the data from the China Passenger Car Association (CPCA).

Tesla (TSLA) declined in pre-market trading on Monday after the EV major’s sales of China-made EVs declined in October, according to data from the China Passenger Car Association (CPCA). This data indicated that the company’s EV sales in October dropped by 5.3% year-over-year to 68,280 vehicles.

Furthermore, the company’s deliveries of its Model 3 and Model Y vehicles fell by 22.7% month-over-month.

TSLA Is Facing Rising Competition in China

TSLA’s drop in sales in October has been a result of rising competition in China, an aging model lineup, and a change in customer preferences. The company is facing rising competition in China from local Chinese companies like BYD (BYDDY), which is offering customers better, newer models of EVs with a longer driving range. Additionally, there has been a shift in customer preferences in China as many customers are opting for hybrid vehicles over EVs as they are proving to be cheaper than EVs and offer a longer driving range.

BYD Outshines TSLA in October Sales

Meanwhile, TSLA’s Chinese rival, BYD continued to trump Tesla with a 66.2% surge in vehicle sales in October. In fact, the manufacturer of EVs and plug-in hybrids clocked vehicle sales of 500,526 units in October.

While TSLA has outsold BYD when it comes to EV shipments in the third quarter, BYD has managed to gain the upper hand, compared to TSLA when it comes to revenues.

Is Tesla a Buy, Hold, or Sell?

Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. Over the past year, TSLA has increased by more than 10%, and the average TSLA price target of $207.83 implies a downside potential of 16.5% from current levels.

See more TSLA analyst ratings

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