June 4 – Shares of Tesla (NASDAQ:TSLA) fell nearly 4% in trading Wednesday morning after new data showed the company's delivery of Chinese-made electric vehicles in May fell 15% year-on-year.
According to preliminary data from the China Passenger Car Association, the electric vehicle maker sold 61,662 units last month in the same period last year. The figure includes domestic sales and exports of its Model 3 and Model Y vehicles.
On a continuous basis, Tesla's delivery rate was 5.5% from April, providing a modest rebound. However, the company continues to face intense pressures from price competition and a mature model lineup in its main markets.
Tesla recently introduced incentives in China, including transfer of assisted driving capabilities to drive new sales. Its vehicles are also included in government-backed programs to increase rural electric vehicle adoption this year.
The broader Chinese electric vehicle market remains highly competitive. Tesla's main rival, BYDDF, rose 14% in global passenger car sales in May. This marks a slowdown in April as other automakers (Geelyf) and Chery participate in new discount events.
This article first appears on Gurufocus.
