

A Tesla store in Colma, California. Photographer: David Paul Morris/Bloomberg
Tesla's China factory shipments resumed their decline in October, adding weight to expectations the Elon Musk-led carmaker faces a challenging final quarter for global sales.
The company shipped 61,497 vehicles from its Shanghai plant in October, down almost 10% from a year earlier, according to preliminary data from China’s Passenger Car Association. Wholesales from the factory have fallen in eight of 10 months this year.
Tesla’s momentum appears to be fading globally after a record quarter of vehicle deliveries. The China figures follow several European countries reporting steep drops in Tesla’s new-vehicle registrations last month, and electric vehicle demand is expected to slump in the U.S. following the expiration of up to $7,500 federal tax credits.
The carmaker recently introduced new versions of its top-selling models priced under $40,000 in an effort to buoy sales. But the stripped-down iterations of the Model 3 sedan and Model Y sport utility vehicle offer less battery range and lack features including ambient interior lighting and a second-row screen.
Chinese carmakers had a mixed October. Whereas Zhejiang Leapmotor Technology Co. and Geely Auto managed new monthly sales records, BYD Co. posted another drop and slipped to second in the market for a second consecutive month.
Total new-energy vehicle sales in China rose 16% to 1.61 million units, according to the PCA. The final months of the year are typically among the busiest for automakers in China as they push to meet their annual sales targets.
Tesla is on course for another annual decline in global sales. The carmaker is forecast to sell 1.64 million vehicles, with around 445,100 deliveries in the fourth quarter, according to estimates compiled by Bloomberg.
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