• 9 hours Fighting For Survival In The Streaming War
  • 1 day Want A Job? Forget About A Bachelor’s Degree
  • 2 days Another Major Car Maker Is Backing Hydrogen
  • 2 days Are Americans Finally Sold On Soccer?
  • 3 days Is The Tech Bubble About To Burst?
  • 3 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 3 days What Web Traffic Trends Can Tell Us About The World
  • 4 days Miners Face Greater Headwinds
  • 4 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 6 days Goldman Slashes Oil Price Forecast By $10
  • 7 days Tesla Raises $2 Billion In Share Selloff
  • 7 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 7 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 8 days How Hydrogen Could Become The Fuel Of The Future
  • 8 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 9 days This Gold Miner Just Increased Its Dividends By 40%
  • 9 days Airbnb IPO Under Threat As China's Economy Drags
  • 9 days The Infamous Equifax Hack Just Became A National Security Issue
  • 10 days BHP Takes The Crown As World’s Top Copper Miner
  • 10 days Tesla Reopens Chinese Factory After Coronavirus Scare
Tesla Raises $2 Billion In Share Selloff

Tesla Raises $2 Billion In Share Selloff

Tesla stock is volatile in…

A Major Red Flag For Oil Markets

A Major Red Flag For Oil Markets

Royal Dutch Shell saw a…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Investing
  3. Stocks

The Mystery Behind Tesla's Chinese Sales Hiccup

Tesla

A week after a report that Tesla’s sales in China crumbled in October and the EV maker refuting it as ‘wildly inaccurate’, an auto industry expert said that the third-party data about Tesla’s plunging sales is accurate, as sales have suffered from frequent price changes in the latter half of this year.

Tesla’s sales in China plummeted by 70 percent in October in the latest demonstration of the adverse impact the U.S.-Chinese trade war is having on business, Reuters reported last week, citing data from the China Passenger Car Association. China is a key market for Tesla where it plans to build a gigafactory, and last month it only sold 211 cars there, according to the association’s data.

In an email to Barron’s, a Tesla spokesman disputed the report of the 70-percent sales plunge, saying that the numbers obtained from an official at the association are “wildly inaccurate” and “off by a significant margin.”

Later in the week, Freeman Shen, chief executive at China’s electric vehicle maker WM Motor, said reports that Tesla’s vehicle sales in China plunged by 70 percent last month is “misleading information” because of the opaque and not always accurate sales numbers coming out of China. Shen told CNBC that Chinese car sales numbers are always “kind of a mystery” because data is collected through several channels. Related: U.S. Treasury Sanctions Bitcoin Wallets For First Time

Now another China-based auto industry expert, Jacob George, vice president and general manager of J.D. Power China, the Chinese branch of U.S. marketing intelligence company J.D. Power, told Observer that “The declining trend is obvious, even if the absolute numbers are not exactly accurate.”

Tesla’s sales in China have suffered from the frequent price changes in response to the Chinese tariffs on U.S.-made cars, according to George.  

“Consumer sentiment on the brand probably hasn’t been affected, but consumer willingness-to-pay is affected by price,” George told Observer, commenting on the trend in Tesla’s sales in China. So far this week, Tesla’s stock has jumped on the news that the U.S. and China are putting the trade war on hold.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment