Chinese EV makers sink tracking disappointing Tesla Q3 earnings

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Chinese EV makers sink tracking disappointing Tesla Q3 earnings

, as a string of price cuts weighed on the firm’s gross margin. Deliveries also weakened in the third quarter, although this was attributed to production disruptions from upgrade work at various factories.

His comments marked a shift in tone from last year, where Musk had assured investors that Tesla was “recession resilient.” Tesla’s cuts had also triggered a price war among Chinese manufacturers- a trend that is expected to almost unanimously dent profit margins for regional players. Tesla’s weak third-quarter showing likely heralds a similar trend for most Chinese EV makers.

China was a bright spot for global EV sales this year, seeing strong growth even as broader automobile sales slowed and local economic conditions deteriorated. But a bulk of this was also driven by local players, who logged record sales as the country reemerged from three years of COVID-related lockdowns.for the third quarter on higher sales and better margins. BYD shares also logged the smallest declines among their peers on Thursday.

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