Tesla Inc. $TSLA is encountering a significant headwind as deliveries from its Shanghai Gigafactory decline for the eighth consecutive month. Official data signal persistent softness, with 61,662 Model 3 and Model Y units shipped in May, 15% below the previous year’s comparable period, according to the China Passenger Car Association. This extends a troubling trend for the automaker, amplifying its worldwide sales challenge.

Hyundai Motor Co. $005380.KS and Kia Corp. $000270.KS have executed a considerable reduction in their holdings of Ola Electric Mobility Ltd. $OLAELEC.NS, one of India’s most prominent electric vehicle startups. On Tuesday, the South Korean automakers sold close to 136 million Ola Electric shares in block deals, shortly after Ola reported a sharp increase in quarterly losses. These transactions come at a pivotal juncture for both the Indian two-wheeler EV sector and international automakers with exposure to emerging markets.

German automaker Mercedes-Benz has reported its first-quarter sales results for 2023, revealing a considerable drop in key markets like China and Europe. Total vehicle and van deliveries declined by 7% year-over-year, down to 529,200 units from 568,400 units last year. This decline stems from weakening demand amid global economic uncertainties, alongside intensified competition in the electric vehicle (EV) market.

Tesla has long been synonymous with innovation and leadership in the electric vehicle (EV) market. However, recent challenges have led the company to report a decline in sales for the first time in years. CEO Elon Musk assured stakeholders that 2024 will be a turning point and that Tesla will soon return to robust growth. Yet, the realities of market competition and shifting public perception cast doubt on this optimistic forecast.