Tesla Inc. has recorded a 12% year-over-year drop in its Chinese sales for the week of July 28 to August 3. Despite this decline, the company has seen quarterly growth in registrations in China.
Quarterly Growth in China
The electric vehicle giant recorded 11,000 new insured registrations in China, indicating a 3.3% surge from the previous week. According to influencer Roland Pircher, the quarter has seen a 46.4% growth compared to the previous quarter. However, year-to-date sales are down 5.7% compared to the same period last year.
Weekly Sales Performance
The week of July 28 to August 3 saw a 3.3% increase in sales compared to the previous week, but a 12% drop compared to the same period last year. This quarter is also down 10.2% compared to the best quarter in 2024.
Elon Musk’s New Compensation Package
The news comes as the board of directors announced a new compensation package for CEO Elon Musk, awarding the billionaire with 96 million shares in the company, totaling around $29 billion. This package is an attempt to compensate Musk after the previously approved $56 billion package was overruled by a court in Delaware in 2024.
Global Sales Performance
Tesla’s global sales have experienced a sharp decline, with a 21% drop in sales in California, despite Model 3 and Model Y being the best-selling electric vehicles. The company’s European figures are also dwindling, with sales in Sweden, Denmark, and France falling for the seventh consecutive month.
Challenges Ahead
The decline in sales poses a challenge for the automaker’s plans in the future. Tesla scores well on Momentum, Quality, and Growth metrics, but offers poor Value. The company needs to address these challenges to maintain its position in the market.
Conclusion
Tesla’s sales performance in China and globally is a mixed bag. While the company has seen quarterly growth in registrations in China, its global sales have experienced a decline. The new compensation package for Elon Musk is a significant development, and the company needs to address the challenges ahead to maintain its position in the market.