Tesla car sales huge fall 70% in China, what about investors?

August 12, 2021August 12, 2021 ev News Topic 0 Comments china, market, sales

Tesla car sales in China plummeted 70%, according to a report by the trade group. The China Passenger Car Association said Tesla’s sales in China fell to 8,621 cars in July, down nearly 70% from June.

But exports of cars manufactured at Tesla’s Shanghai plant rose to 24,347 for July, compared with 5,017 in June. This means that total sales of Chinese-made Tesla fell less than 1% overall.

Critics say the large and rapid drop in sales to Chinese consumers is yet another sign of the growing problems facing the company in the country. Tesla faces increased competition from Chinese electric vehicle manufacturers as well as bad publicity, including the recall of almost all cars manufactured in Shanghai.

Tesla accounted for just 3.9% of battery-powered electric vehicle sales in China in July, up from 12.6% in June, said analyst Gordon Johnson, who was one of the company’s harshest critics. He said the drop shows that Tesla faces tougher competition from local EV start-ups.

However, Tesla ‘s ( TSLA ) investors appeared to remain uninvolved in the fall in sales, as shares retreated less than 1% on Tuesday.