Tesla Inc (NASDAQ:TSLA) reported weak car sales in China in April 2021 compared to the previous month.
A 27% drop in Tesla car sales in China
According to the Passenger Car Association estimates in China, the sales of Tesla are less than 26,000 cars (down 27% MoM) in April 2021. The overall sales of vehicles in China are declined by 10% in April.
The actual Tesla car sales in China are 14,174 in April 2021.
Tesla exported the balance cars to overseas markets. The sales decline is a severe problem for the company in China.
Tesla inaugurated its second plant in Shanghai, China, in late 2019 to cater to the domestic market demand. EVs accounted for 4.5% of the total car sales in China in 2020.
Insured cars declines by 60%
According to Zhu Yulong, an independent EV analyst in China, the sales of Tesla cars are declined by over 60% during March and April 2021 in China. Zhu said the count of newly insured cars fell from 34,500 in March 2021 to less than 12,000 in April 2021.
Customers protest about problems with EVs
The customers protested about the problems with Tesla EVs purchased by them at the largest auto demo in Shanghai last month. Five regulatory agencies in China are investigating the quality issues in Tesla Model 3 cars manufactured at the Shanghai plant.
According to Chinese media, the military establishments in China banned the entry of Tesla cars into their premises because of spying concerns using its onboard cameras. However, Elon Musk, CEO of Tesla, denied the claim of the Chinese military. Negative coverage of Tesla cars also caused the damage. Weak sales affect the bottom line of Tesla.
Tesla shares trade lower
The shares of Tesla are trading lower this week on concerns of weak sales in China. According to a recent report in Reuters, Tesla will not buy land near the Shanghai plant for its future expansion. Its shares fell by 2% on May 11, 2021, following sales data release in China.
Tesla will not accept payments in Bitcoin (BTC)
Some Tesla investors are joyous as the company decided not to accept Bitcoin for its car sales, citing environmental concerns. As a result, Bitcoin lost 17% of its value this week.