Tesla Inc (NASDAQ:TSLA) shipped 4.3% fewer vehicles on a year-on-year basis from its Shanghai factory in November, according to preliminary data from the China Passenger Car Association (CPCA).
A total of 78,856 units were shipped in total, which was a 15.5% increase from October despite the year-on-year decline.
Intense competition from cheaper domestic rivals like BYD has forced Tesla into slashing the prices of its electric vehicles in China alongside offering interest-free financing options.
BYD’s aggressive pricing strategy has made it the bestselling EV maker in the country, with sales seeing a 67.2% year-on-year rise to more than 504,000 units in November.
The CPCA estimated that total wholesale deliveries of ‘new-energy’ passenger vehicles in China rose 51% year-on-year in November to 1.46 million units.
Tesla operates its Shanghai factory as a key production hub for its Model 3 and Model Y vehicles, serving both domestic and international markets.
Tesla shares are expected to open 0.7% lower at $354.5 when trading commences on Tuesday.