Sales in China plummeted without stopping, Tesla stock plummeted

In the last trading session on the US stock market, Tesla shares witnessed a sharp decline when a report from The Information website citing insiders said that orders were plummeting in the market. China – an important market for Tesla.

More specifically, based on its sources, The Information said that Tesla’s new orders in this market decreased to only 9,800 vehicles in the past month – a drastic decrease compared to the previous month as well as compared to a peak of 21,000 vehicles in March of this year.

According to a person familiar with the company’s data, the company’s monthly net orders in China fell to just 9,800 vehicles in May, compared with 18,000 vehicles in April. The steep drop reflects Chinese consumers’ turning away from Tesla, which welcomed founder Elon Musk when he arrived, and orders spiked in January after the SUV. The Model Y launched and has been steadily declining since then before falling vertically last month. In March, Tesla had 21,000 new orders. Even this source said, if measured by the week, there is no sign of any. showing a recovery in sales .”

According to the report, “public backlash and government criticism” stemmed from Tesla’s recent actions in China, including handling a customer’s complaint when he was involved in an accident. while driving a Tesla earlier this year.

After The Information’s report appeared, Tesla shares on the US stock market plunged 4% – wiping out billions of dollars of the company’s market capitalization. The current price of $ 572 is also the lowest level of Tesla stock in the last 6 months.

Refer to Electrek