Due to enhanced scrutiny, Tesla’s car orders in China in May were reduced by nearly half compared with April. The report shows that Tesla’s monthly net orders in China dropped from more than 18,000 in April to about 9,800 in May. This figure directly caused Tesla’s stock price to fall by nearly 5% in afternoon trading.
For electric car manufacturer Tesla, China is the second-largest market after the United States, accounting for about 30% of its sales. In addition, Tesla also has a factory in Shanghai that specializes in the production of Model 3 electric cars and Model Y sport utility vehicles.
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In 2019, Tesla established its first overseas factory in Shanghai and received strong support from the Shanghai government. Before being surpassed by Wuling Hongguang Mini EV, Tesla’s Model 3 sedan was the best-selling electric car in China.
However, in recent months, due to some vehicle safety issues, Chinese regulators have taken a tougher stance against Tesla. In addition, the market’s attitude towards Tesla has changed and complaints have increased, and the company’s overall sales have declined.
Except for May, Tesla’s sales in China in April also fell sharply compared with March. Cui Dongshu, secretary-general of the China Automobile Industry Association (CPCA), said that Tesla sold 11,671 Model 3 and Model Y vehicles in China in April, and 35,478 vehicles were sold in March, most of which came from China. Tesla did not immediately respond to media requests for comment.
