Tesla shares fall on news of sharp drop in sales in May in China

Tesla shares fall on news of sharp drop in sales in May in China

A Model Y vehicle on display at a Tesla flagship store on January 4, 2021 in Shanghai, China.

Gao Yuwen | China Visual Group | Getty Images

You’re here shares fell more than 4% by midday Thursday after a report that the company’s vehicle orders fell sharply in China during May.

the Information, citing a single source familiar with the data, wrote that “Tesla’s monthly net orders in China fell to around 9,800 in May, from more than 18,000 in April.” CNBC did not corroborate this report.

The Tesla factory in Shanghai is said to have the capacity to manufacture half a million electric cars per year for deliveries to China and exports to other parts of Asia and Europe.

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

According to the analysis of Tesla’s job postings over time by Snow Bull Capital, the company is stepping up its hiring for Legal and Governmental Affairs positions in 2021 across the country, and generally increasing hiring at its factory in Shanghai.

Tesla’s Chinese rival Nio saw shipments plummet in May as a global semiconductor shortage hit their business. But another competitor, Xpeng, said it delivered 5,686 cars in May, an increase of 483% year-on-year and a 10% increase from the previous month.

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

ApkGeo News

Leave a Reply

Your email address will not be published.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