Tesla shares fell about 2% on Monday after sales of its Chinese-made electric vehicles fell 10.9% year-on-year in September, according to a report from the China Passenger Car Association.
According to the report, the US automaker sold 74,073 Chinese-made electric vehicles in September. Sales of the Chinese Model 3 and Model Y fell by 12% on a monthly basis.
Tesla exports a large percentage of the cars it produces to China. News of Tesla's sales decline comes a week after the company announced that car deliveries in the third quarter decreased compared to deliveries and production in the previous quarter.
The company's third-quarter global deliveries fell short of market expectations as plans to modernize its factories to introduce updated Model 3 sedans halted production.
“The decrease in production is due to planned closures to modernize factories,” the company said. “The sales target of about 1.8 million vehicles in 2023 remains unchanged. In October, the company reduced prices for some Model 3 and Model Y vehicles in the United States.
Car deliveries to Chinese rival BYD rose 42.8% in September compared to September last year. The company delivered 286,903 vehicles in September, compared to 200,973 vehicles in the same period last year.
The Chinese company achieves these values through its Dynasty and Ocean series gasoline-electric hybrid models.
Tesla and its rivals in China are preparing for a rebound in consumer confidence with deep discounts and tax breaks on environmentally friendly cars amid signs of economic stability.
The company's share of electric vehicles in China doubled between July and August, as Tesla shipped more Chinese-made vehicles for export at the beginning of each quarter, focusing on domestic deliveries.
In September, the company launched the redesigned Model 3 in China, with a starting price of 259,900 yuan (US$35,650), 12 percent higher than the starting price of the previous version.
Its Chinese rival Xpeng Motors also launched the redesigned G9 SUV with a starting price of 263,900 yuan (US$36,200), making the new price 15 percent lower than the previous one.