Tesla shares drop on report of steep May sales decline in China


In this article

A Model Y vehicle displayed at a Tesla flagship store on Jan. 4, 2021 in Shanghai, China.
Gao Yuwen | Visual China Group | Getty Images

Tesla shares dropped more than 4% in mid-day trading Thursday after a report that the company’s vehicle orders declined steeply in China during the month of May.

The Information, citing a single source familiar with the data, wrote that Tesla’s “monthly net orders in China dropped to about 9,800 in May from more than 18,000 in April.” CNBC has not corroborated that report.

Tesla’s Shanghai factory is supposed to have the capacity to make half a million electric cars a year for deliveries in China and exports to other parts of Asia and Europe.

Elon Musk’s electric vehicle company has been grappling with recalls and safety investigations in China, and a public relations backlash there following some high-profile vehicle crashes, price changes and quality complaints from Chinese customers.

According to analysis of Tesla job listings over time by Snow Bull Capital, the company is stepping up its hiring for “Legal & Government Affairs” positions in 2021 across the country, and generally ramping up hiring at its Shanghai plant.

Chinese Tesla rival Nio saw deliveries slide in May as a global semiconductor shortage hit its business. But another competitor, Xpeng, said it delivered 5,686 cars in May representing a 483% year-on-year rise and a 10% increase from the previous month.

Tesla shares are down about 15% year-to-date.

Products You May Like

Articles You May Like

Johnson says working with Biden is ‘breath of fresh air’ after first face-to-face talks
Grid-Scale U.S. Energy Storage Capacity Could Grow Five-Fold By 2050
Saudi Arabia severely limits numbers going to Hajj pilgrimage for second year running
PM urges G7 not to ‘repeat the mistake’ of 2008 financial crash during COVID recovery
Researchers Claim to Have Developed Cost-Effective Method to Extract High-Purity Lithium from Seawater

Leave a Reply

Your email address will not be published. Required fields are marked *