Tesla Stock Drops 2%

Tesla's stock fell 2% on Monday as sales of its China-made electric vehicles fell about 11% in September, according to the China Passenger Car Association.

The report noted that the U.S. automaker sold 74,073 EVs made in China. Chinese sales of Model 3 and Model Y vehicles dropped by 12% between August and September, CNBC reported, quoting the association.

Tesla's sales drop followed underwhelming third-quarter vehicle deliveries. It noted in its most recent earnings call that planned downtimes for factory upgrades led to the decline. The automaker said its 2023 volume target of around 1.8 million vehicles remained unchanged.

BYD, Tesla's Chinese competitor, experienced about a 43% year-over-year increase in passenger vehicle deliveries last month to 286,903, Reuters reported.

Tesla, like other EV makers, is banking on deeper discounts and tax breaks for green vehicles to boost sales for the remainder of the year, Reuters said.