Tesla stock took a big tumble Monday. Shares in the company fell over 7% after new figures showed sales slumping in China - the world’s biggest car market.

Tesla sold just over 60,000 China-made vehicles in February. That was down 19% on a year earlier, and the lowest figure since December 2022. Those numbers came from the country’s Passenger Car Association. They add to concerns that the EV maker faces declining demand and growing competition.

Critics say it’s burdened by a lack of entry-level models, and an aging product lineup.

Last week, Tesla unveiled a raft of new incentives in China in a bid to turn things around. That includes subsidies for insurance.

But local rival BYD fired back, launching a lower-priced version of its best-selling car. The moves escalated an intensifying price war in the market for EVs.

Now some analysts are cutting their sales forecasts for Tesla, citing worries over demand.

In January, Elon Musk’s firm had warned of “notably lower” growth this year while it focuses on developing a more affordable new model.

  - Reuters