It appears that Tesla’s recent string of bad publicity has hurt its sales figures in China, causing some concern among investors.
According to figures published by the China Passenger Car Association, Tesla sold less than 26,000 vehicles in China in April, marking a decrease of 27% from the previous month. The latest decline comes amid an improvement in domestic sales among other Chinese EV manufacturers, including Nio, Epeng, and Li Auto. Tesla accounted for approximately 17% of all electric vehicles sales in April, a drop of 21% from the previous month.
The poor sales figures are likely the result of recent bad publicity in China that has plagued Elon Musk’s company. Last month, Tesla was the subject of a protest at China’s biggest vehicle show in Shanghai, after disgruntled customers complained of brake failures and other problems with their Tesla models. At the same time, Tesla is also the target of numerous quality control probes, as regulatory agencies question the quality of Shanghai-made Model 3 vehicles.
In addition, reports have surfaced that the Chinese military had banned Tesla cars from entering its facilities, after raising concerns that the vehicle’s cameras could be used for spying. Tesla’s stock also took a further tumble after Reuters reported that the EV maker refrained from bidding on a piece of land near its Shanghai factory that was initially slated for expansion into a global export hub.
Information for this briefing was found via the China Passenger Car Association and Reuters. 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.