Tesla struggles to grow business in the Chinese market

London: 10 August 2023 (TraderMade): The globally recognized electric vehicle brand, Tesla, started selling its vehicles in China in 2014. So far, the company has faced many challenges to hit its stride in the Chinese market.

According to the Bank of America, Tesla EVs demand is declining in China currently. However, the flattering economy may not be the reason.

Tesla's deliveries (Model 3 and Model Y) declined by 31% in July m/m. Notably, Tesla's rival brand, BYD, has gained popularity. The demand for BYD vehicles increased by 4% recently.

Tesla should compete with local brands to stay ahead of the curve. Tesla went for an aggressive price cut in December 2022, but the attempt could not attract customers in the long run.

The Model 3 and Model Y demand increased initially, but the reduced response in July shows that the gains were temporary.

Overall, the market sentiment impacts Tesla stocks, as on 18 July '23, Tesla stocks (TSLA) closed at $293.34. Currently (as of 9 August '23), the stock price closed at $242.19. Your decisions regarding Tesla Stocks and CFDs with ticker symbol TSLA must be backed by in-depth market research. Stay updated with the CFD market moves to make informed decisions.