Tesla Shares Slip Below $600 Following Report of Steep China Sales decline

It appears that Tesla is headed even further into turbulent territory with China, as the EV maker’s orders in the communist country fell sharply in May.

According to The Information, which cited a source familiar with the data, Tesla’s monthly net orders to China fell from 18,000 in April to approximately 9,800 last month. “The electric car pioneer grappled with public outcry and government criticism over its handling of consumer complaints. Taken together, the developments put in doubt Tesla’s vaunted position and success in the world’s biggest electric vehicle market,” the San Francisco-based tech news company added.

This caused Tesla’s shares to tumble even further on Thursday, especially after a US regulator also on Thursday revealed that over 5,500 Model 3 and Model Y vehicles were being recalled over seat-belt concerns.

China has been one of the EV maker’s largest consumer base, as well as its most critical one. Tesla’s Shanghai factory has been the main driving factor that has allowed it to meet Wall Street’s optimistic expectations, particularly with respect to production and sales targets.

However, as the number of disgruntled Chinese Tesla owners continue to grow, the EV maker may soon face an even bigger crisis. The company’s market share in the world’s largest car market is receding— and fast. Tesla’s market share fell from 19% in March to 8% in April, while legacy automaker General Motors saw its market share jump to above 20%.


Information for this briefing was found via the companies mentioned. 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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Judge Rules That Tesla, Musk Were Aware of Autopilot Defect

In a recent ruling by Judge Reid Scott of the Circuit Court for Palm Beach...

Thursday, November 23, 2023, 04:06:22 PM

Unverified Online Reports of Health Crisis in China Spark Concerns

Recent social media reports have claimed that China is experiencing a severe health crisis, with...

Sunday, January 5, 2025, 07:37:32 AM

Tesla Reports 308,600 Vehicle Deliveries For Q4 2021

Tesla Inc (NASDAQ: TSLA) this morning oddly released its production and delivery figures for the...

Sunday, January 2, 2022, 11:34:38 AM

Retail Traders Dive Into Chinese ETFs Even as Institutional Investors Flee

Retail investors have been flocking to ETFs that track Chinese companies, after a stringent regulatory...

Saturday, August 7, 2021, 11:09:00 AM

Tesla Shares Fall After Company Misses Sixth Consecutive Quarterly Profit

Putting the buzz surrounding the once-in-a-century GameStop price rally aside, it appears that Tesla, the...

Thursday, January 28, 2021, 11:56:00 AM