In April, Tesla’s sales of China-made electric vehicles fell by 18% YoY to 62,167 units, lagging behind the broader Chinese EV market’s growth, as reported by the China Passenger Car Association. This downturn led to a 3.8% drop in Tesla shares, exacerbated by concerns over decreasing demand and a price war with Chinese competitors. In contrast, Tesla’s main Chinese rival, BYD, recorded a 49% increase in sales. Amid these challenges, Tesla has been reducing prices and laying off over 10% of its workforce globally.