Musk Slams ‘Stupid’ Reports of Falling Tesla Popularity in China
Tesla CEO Elon Musk labeled reports of a waning interest among Chinese consumers in Tesla vehicles as “stupid.” This response comes amidst growing concerns over Tesla declining market share in China, a crucial battleground for electric vehicle (EV) manufacturers.
Musk comments reflect the company ongoing struggle to maintain its dominance in the face of intensifying competition and a market that is increasingly being saturated with advanced alternatives.
Elon Musk, known for his outspoken demeanor, has rejected claims that Tesla is losing its appeal in China. During a recent interview, Musk described the reports of declining popularity as “foolish,” asserting that they fail to reflect the true state of Tesla operations.
“The Shanghai factory is running at full capacity,” Musk stated, emphasizing the company continued commitment to its Chinese production base despite the reported dip in sales.
This bold assertion aims to counterbalance the narrative of Tesla’s faltering presence in one of its most significant international markets.
Recent data from the China Passenger Car Association (CPCA) paints a more sobering picture of Tesla performance in China. Tesla market share in the region has dropped from 9% last year to 6.5% as of July 2024.
Additionally, Tesla sales figures reveal a 10.47% decline in units sold in the first half of this year compared to the previous year, with total sales amounting to 426,000 units.
This downturn is especially notable given the previously strong performance of Tesla models in the Chinese market.
The decline in Tesla sales is attributed to the increasingly competitive nature of China EV market. Domestic brands such as Li Auto, NIO, and Wenjie have intensified the competition by introducing new models and advanced features that appeal to Chinese consumers.
The high-end SUV segment, where Tesla Model Y competes, has become particularly crowded. Tesla failure to release new models since 2019 has contributed to a perception of stagnation, making it difficult for the company to maintain its leading position against these agile competitors.
While the Model Y has remained a top performer, being the best-selling passenger car in China for several months, the Model 3 has seen a significant drop in sales. Monthly sales of the Model 3 have fallen below 20,000 units, down from over 30,000 units in previous months. This decline highlights the growing challenge for Tesla in sustaining its earlier success amidst a rapidly evolving market.
Despite the criticisms, Tesla continues to operate its Shanghai factory at maximum capacity, indicating a robust production capability. Musk defense of the factory underscores Tesla commitment to meeting production demands and suggests that the company is focusing on scaling its operations rather than addressing the reported sales decline through new model introductions.
source Fast Technology
