Sales of Chinese-made Tesla Inc (NASDAQ:TSLA) vehicles slumped in September as a bout of price cuts failed to bolster demand amid growing competition in the region.
Volumes reduced by 10.9% year on year in September to 74,073 vehicles, while sales of Tesla’s Model Y and 3s were down 12% from August.
Rival BYD penned near-43% growth in sales to 286,903 compared to last September, China Passenger Car Association data revealed over the weekend.
A flurry of price cuts earlier this year, led by Tesla, has marked the intense competition among electric vehicle (EV) producers, particularly in China.
Despite the price cuts, which have stretched to the European and US markets, Tesla reported third-quarter deliveries last week below Wall Street expectations.
Elon Musk’s firm delivered some 435,059 vehicles globally over the quarter, missing analysts' expectations of 455,000.
A newly updated Model 3, alongside the start of production of Tesla’s Cybertruck in the coming quarter, were indeed reasons to be reassured, according to Wedbush analyst Daniel Ives.
Upgrades at Tesla's Shanghai and Austin factories are also expected to have weighed into production, Ives explained, though this had lasted longer than anticipated.
However, with Tesla’s updated Model 3 set to cost more than the existing version, head of Shanghai-based investment firm Automobility Bill Russo suggested Musk’s firm would have to remain “aggressive” on price.
“What would the sales figure be like if Tesla didn’t launch the price war?” he said, pointing to increased competition from Chinese firms Nio and Geely, which both scored higher sales in September.