Shares of major Chinese electric vehicle manufacturers fell sharply on Friday, following Tesla’s report of better-than-anticipated quarterly deliveries that stoked worries about intensifying global rivalry in the EV market.
Tesla disclosed late Thursday that it delivered 497,099 vehicles in the third quarter—a result that surpassed Wall Street forecasts and represented a 7.4% increase year-on-year. Despite the beat, Tesla stock itself declined, as the surge in deliveries was partly attributed to U.S. customers accelerating purchases ahead of expiring federal tax credits.
In efforts to bolster its performance in China, its largest offshore market, Tesla began shipping its recently launched six-seat Model Y variant to Chinese customers in September, a move seen as part of its strategy to fortify market share.
Tesla’s strong results have renewed concerns that the U.S. automaker could regain ground worldwide, putting additional strain on Chinese EV makers already contending with fierce domestic price competition and proliferating supply.
The pressure was evident in Asian markets Friday: BYD Co shares closed at 3.95% in Hong Kong trading, leading sector losses. Xpeng Inc tumbled 3.05%, NIO Inc dipped 2.21%, Geely Automobile Holdings slid 1.93% and Li Auto Inc declined 2.40%.
