Tesla's sales in China have tumbled and its slumping economy may not be to blame, Bank of America says

• Tesla sales in China have slumped – and it's faltering economy may not be the reason why, according to Bank of America.
• That's because demand for Tesla rival BYD rose 4%, while Tesla deliveries dropped 31% month-over-month in July. 
• It suggests demand for Teslas in China is waning in the face of local competition. 

Tesla sales in China have slumped showing its aggressive price cuts are no longer proving fruitful, according to Bank of America. 

In a recent note, the bank highlighted Tesla Model 3 and Model Y deliveries in China dropped by 31% month-over-month in July, while its largest EV competitor in China, BYD Auto, grew 4% month-over-month.