Tesla Faces Declining Sales as Competition Heats Up in China

Tesla's sales of China-made electric vehicles saw a 6% drop in April compared to the previous year, marking the seventh consecutive month of decline. The American automaker finds itself in stiff competition against local Chinese brands and is dealing with a damaged reputation in the European market.

Data from the China Passenger Car Association (CPCA) indicated Tesla's deliveries of Model 3 and Model Y vehicles, designed both for export to European markets and domestic Chinese sales, came in at 58,459 units last month. This represents a 25.8% decrease from March. Sales in Europe have also taken a hit, as the populace reacts to CEO Elon Musk's controversial political alignments.

Compounding the challenges, protests against Musk in the United States have similarly influenced local sales detrimentally. In response, Tesla is intensifying its efforts to explore new opportunities in markets like India and Saudi Arabia. Simultaneously, Chinese competitor BYD recorded a significant 19.4% year-over-year increase in global vehicle sales, presenting additional challenges for Tesla.

(With inputs from agencies.)