March 4, 2024 1:55 PM EST Tesla (TSLA) faced a decline in sales in China in February, with 60,365 China-made vehicles sold, marking a 19% decrease from the previous year and the lowest sales since December 2022. As a result, Tesla shares dropped 7.8% at $186.95, a decrease of roughly 25% since the beginning of the year.

The sales slowdown happened during China’s Lunar New Year holidays, a period that typically sees reduced car purchasing activities. Despite a series of price cuts and incentives introduced by Tesla to counter growing competition from Chinese rivals such as BYD, the sales remained low.

Analyst Troy Teslike revised down his estimates for Tesla’s global deliveries for the January to March period to 450,000, citing weaker-than-expected China sales as a sign of a “demand problem.”

Read more: Tesla shares skid after China sales fell in February | Reuters