On July 18, BBA brands raised prices, sparking jokes about “not rolling anymore.” Meanwhile, Tesla focused on live streaming car sales. Tesla launched its third live stream of the day on July 18. Recent data shows Tesla has streamed over 20 times this month. Some of its last 10 streams attracted over 10,000 viewers. “Get rolling,” said a Tesla insider to Blue Whale News. They noted that Tesla has always engaged in live streaming. Store accounts also stream daily. However, only certified hosts can sell in the official live stream. They must pass a product knowledge test. Tesla faces significant market pressure behind the live streaming. On July 2, Tesla reported selling 444,000 cars globally in Q2, a 4.8% drop from last year. This marks two consecutive quarters of declining sales. In the first half of the year, global deliveries fell 6.6% to 837,700 units. In China, retail sales for Tesla hit about 59,300 units in June, a 20.1% year-on-year decline. In contrast, rival brands saw growth. Li Auto’s sales surged nearly 50% that month, while Seres, backed by AITO, saw sales increase over sixfold.
On July 1, Tesla launched its summer sales promotion. The company aims to boost market performance. Tesla’s official Chinese account announced three benefits for consumers in July. First, Tesla offers a five-year, zero-interest policy for the Model 3/Y standard range. Daily payments start at 85 yuan (10$). Second, the Model 3/Y long-range all-wheel drive also has a five-year, zero-interest policy. Daily payments start at 107 yuan (10$). Third, the limited-time low-interest annual rate drops to 0.5%. Customers can choose the five-year, zero-interest option with a down payment of 79,900 yuan (10990$). The Model 3 rear-wheel drive has daily payments as low as 85 yuan (10$). The long-range all-wheel drive starts at 107 yuan (10$). The Model Y rear-wheel drive has daily payments starting at 95 yuan (10$). The long-range all-wheel drive starts at 118 yuan (20$). Compared to the previous standard annual rate of 2.5%, Model Y buyers can save over 26,000 yuan (3580$) in interest. Tesla representatives stated that the zero-interest policy significantly boosts store sales. Notably, many luxury car brands face pressure in the Chinese market this year. For example, BMW sold 376,000 vehicles in China in the first half of the year, a 4.2% decline year-on-year. Mercedes-Benz delivered over 352,600 new cars in the same period, down 6.5% from 377,200 in 2023.
Mercedes-Benz and Audi have followed suit and raised prices at the end. However, BBA has not responded to the price increase or the exit from the “price war.” Industry experts believe BBA and other luxury brands face challenges in China. These challenges stem from pressure in the traditional fuel vehicle market and fierce competition from Chinese electric vehicle brands. Public data shows that luxury car sales in China rose from 1.5625 million units in 2021 to 1.7668 million units in 2023. Domestic luxury car brands have gained market share. According to a report from Founder Securities, the share of domestic brands in the luxury car segment increased from 1.38% in January 2021 to 17.33% in December 2023. This growth results from the efforts of domestic brands and new players. As BBA exits the price war, consumer hesitation grows. Whether they will choose Tesla or domestic high-end brands remains to be seen.