Tesla Shares Tumble on 49% Drop in China Deliveries

March 4 - Tesla (TSLA, Financial) shares plunged over 6% on Tuesday morning as the automaker faced significant sales headwinds amid intensifying competition. Preliminary data from China's Passenger Car Association revealed that Tesla's Shanghai plant delivered only 30,688 vehicles in February, a 49% decline compared to 60,172 units last year. This sharp drop follows January's shipments of 63,238 vehicles and underscores mounting challenges in one of Tesla's most important markets.

In stark contrast, rival BYD sold more than 318,000 vehicles in China last month, recording a 161% year-over-year increase. The surge by BYD highlights the competitive pressure Tesla now faces from domestic EV makers.

Tesla's struggles extend beyond China. Europe's retail sales also were hit, with January figures down 45% year over year. As the Nordic countries confirmed a 42% drop in Sweden and one of 48% in Denmark. The weakness of these sales figures, with weakening competition coming from both emerging EV brands and established legacy automakers in Europe and Japan looks to be driving some investors to reevaluate Tesla's growth prospects and sending markets lower.