June 4 – Tesla (NASDAQ:TSLA) shares fell nearly 4% on Wednesday morning trading after new data showed a 15% year-on-year drop in the company’s China-made electric vehicle deliveries for May.
The EV maker shipped 61,662 units last month, down from the same period last year, according to preliminary figures from the China Passenger Car Association released Wednesday. The figure includes both domestic sales and exports of its Model 3 and Model Y vehicles.
On a sequential basis, Tesla’s deliveries edged up 5.5% from April, offering a modest rebound. However, the company continues to face pressure from intense price competition and a maturing model lineup in its key markets.
Tesla recently rolled out incentives in China, including assisted driving feature transfers, to drive new sales. Its vehicles were also included in a government-backed program to boost rural EV adoption for the first time this year.
The broader Chinese EV market remains highly competitive. BYD (BYDDF), Tesla’s main rival, saw global passenger vehicle sales rise 14% in May. That marked a slowdown from April’s pace as other automakers like Geely (GELYF) and Chery joined fresh discount campaigns.
This article first appeared on GuruFocus.