25,845 Units Sold in April... 9,633 Units Less Than March's 35,478
Reflects Negative Sentiment Toward Tesla Amid Recent Shanghai Motor Show Protests
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Tesla electric vehicle sales in China last month plummeted by 27%, according to data. Analysts attribute this to the negative sentiment toward Tesla in China following safety-related protests involving Tesla vehicles at the Shanghai Motor Show.
Chinese economic media Caixin reported on the 12th, citing data from the China Passenger Car Association (CPCA), that Tesla's sales in China last month amounted to 25,845 units (wholesale basis). This represents a 27.15% decrease compared to 35,478 units sold the previous month.
This year, Tesla's sales in China had increased for three consecutive months: 15,484 units in January, 18,318 units in February, and 35,478 units in March.
Caixin noted that due to fewer working days during the Qingming Festival holiday, automobile sales in China decreased by 8.3% compared to the previous month. It also added that sales of luxury cars and new energy vehicles fell by 7% and 12%, respectively, last month. This indicates that Tesla's sales decline was relatively larger.
Caixin reported that recent controversies in China regarding Tesla vehicle safety and data collection are likely related to the sales decline. It mentioned issues such as Tesla vehicle battery fires, safety accidents caused by brake system malfunctions, and data collection through in-car cameras and radar, which have sparked debates in China.
Caixin also referred to the protest by a Tesla owner at the Shanghai Motor Show on the 19th of last month. Although the Tesla owner was sentenced to five days of administrative detention for illegal protesting, the atmosphere toward Tesla in China remained cold. Since then, whenever a Tesla safety accident occurs, public opinion in China has been inflamed regardless of the cause of the accident.
The state-run Global Times also reported on the same day that Tesla's April sales plunged by 27% compared to the previous month, mentioning the recent Tesla controversies in China. Additionally, the Global Times reported that Tesla exported 14,174 electric vehicles produced at its Shanghai factory overseas last month, setting a new export record. The Global Times added that this contradicts claims from some sectors of the Chinese automotive industry that Tesla's domestic sales decline was due to fewer working days in April and production halts caused by improvements on the Model Y production line.
Meanwhile, on the 11th (local time), Tesla shares opened at $599.19 on the Nasdaq market, with a low of $595. Tesla shares had also experienced a sharp 7% drop in pre-market trading that day. Ultimately, Tesla shares closed down 1.9% compared to the previous day.
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