China's BYD posts 21% jump in quarterly EV sales, closes gap with Tesla

In May, new energy vehicles accounted for 46.7% of China's total car sales, according to data from the China Passenger Car Association (CPCA). This represents a new monthly high for new energy vehicle sales in the country.

Tesla may post a decline in deliveries for two consecutive quarters due to stiff competition in China, slow demand for its aging models, and a lack of affordable new models2. The company has also faced challenges such as cutting output of its best-selling Model Y electric car in its Shanghai plant to address weakening demand in China, its second-largest market after the United States.