The China Passenger Car Association, Thursday, released Tesla's (NASDAQ:TSLA) October 2023 delivery results, announcing that the electric automaker delivered 72,115 China-made electric vehicles in the month, down 2.6% M/M.
Sales of China-made Model 3 and Model Y cars edged up 0.6% from a year earlier.
Tesla has focus on sales over profits, notably in China, where the American electric vehicle leader has faced increasing competition from domestic competitors. Despite offering substantial discounts, its profit margins have taken a hit without a corresponding increase in market share.
In the third quarter, Tesla's market share in China's electric vehicle sector declined to 9.89% from 12.98% in the previous quarter and 9.93% compared to the same period a year ago.
Tesla fell short of 3Q expectations for gross margin, profit, and revenue. Additionally, the company failed to meet its global delivery forecasts due to scheduled factory upgrades that restricted production for the updated Model 3 version.
Tesla launched the upgraded and more expensive Model 3 in China back in September, with official deliveries commencing on October 26th.
Shares of TSLA are up 3.43% in pre-market trading on Thursday.