Tesla shares continued their nosedive on Wednesday, after data from China showed a significant drop in sales last month.
As reported by Bloomberg, there were only 11,949 China-built Tesla’s registered in the communist country, according to data published by the China Automotive Information Net. This marks a significant decline from the record 34,714 registrations accounted for in March.
In addition to the decline in new Tesla registrations, China’s Passenger Car Association last week published data showing that Elon Musk’s company sold only 25,845 Chinese-made vehicles in April, down from the 35,478 sold in the previous month. To make matters worse, 14,174 of those EVs sold in April were exported to Europe.
The latest decline in local registrations creates an even bigger headache for CEO Elon Musk, who has been battling recent bad press in the communist country. The recent fall from grace ensued shortly after a disgruntled Tesla owner climbed atop one of the company’s display vehicles at the Shanghai auto show, shouting that her car brakes failed and caused a crash. The publicized protest was met with even more bad press from Chinese government entities, which called on Tesla to respect Chinese consumers and adhere to local laws.
To further add insult to injury to the EV maker’s quickly-deteriorating public image, the state-owned Global Times reported that a Tesla was involved in a crash this week that injured one policeman and killed another. Since the beginning of May, Tesla’s stock has fallen nearly 20%.
Information for this briefing was found via Bloomberg and the Global Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.