Tesla’s China shipments drop for the eight time in 10 months
[HONG KONG] Tesla’s China factory shipments resumed their decline last month, adding weight to expectations the Elon Musk-led carmaker faces a challenging final quarter for global sales.
The company shipped 61,497 vehicles from its Shanghai plant in October, down almost 10 per cent from a year earlier, according to preliminary data from China’s Passenger Car Association (PCA). Wholesales from the factory have fallen in eight of 10 months this year.
Tesla shares fell 2.2 per cent as of 10 am on Tuesday (Nov 4) in New York trading. The stock had risen 16 per cent this year as of the close on Monday, roughly in line with the advance in the S&P 500 Index.
Tesla’s momentum appears to be fading globally after a record quarter of vehicle deliveries. The China figures follow several European countries reporting steep drops in Tesla’s new-vehicle registrations last month, and electric vehicle demand is expected to slump in the US following the expiration of up to US$7,500 federal tax credits.
The carmaker recently introduced new versions of its top-selling models priced under US$40,000 in an effort to buoy sales. But the stripped-down iterations of the Model 3 sedan and Model Y sport utility vehicle offer less battery range and lack features including ambient interior lighting and a second-row screen.
Chinese carmakers had a mixed October. Whereas Zhejiang Leapmotor Technology and Geely Auto managed new monthly sales records, BYD posted another drop and slipped to No 2 in the market for a second consecutive month.
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Total new-energy vehicle sales in China rose 16 per cent to 1.6 million units, according to the PCA. The final months of the year are typically among the busiest for automakers in China as they push to meet their annual sales targets.
Tesla is on course for another annual decline in global sales. The carmaker is forecast to sell 1.6 million vehicles, with around 445,100 deliveries in the fourth quarter, according to estimates compiled by Bloomberg. BLOOMBERG
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