• 3 days Chinese Stocks Rebound After Regulatory Scare
  • 5 days Apple Stocks Falls After Blowout Earnings Report
  • 5 days The 5 Biggest IPO Disasters Of 2021
  • 6 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 9 days Ireland Balks At Biden’s Global Tax Plan
  • 12 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 15 days Facial Recognition Is Watching You
  • 16 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 16 days The Fed’s $3 Trillion Headache
  • 20 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 20 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 21 days Delta Variant Real Threat To Economic Recovery
  • 24 days JEDI Drama Continues With Microsoft Contract Cut
  • 26 days DiDi Shares Take a Beating From Chinese Regulators
  • 27 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 27 days Jobs Report Has Big Numbers, But Still Big Problems
  • 28 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 31 days Didi Just Went Public, And Uber Is Loving It
  • 32 days Islamic Finance On Track To Hit $3.7 Trillion
  • 33 days The Lumber Bubble Is Bursting
Inflation Is Coming. Are You Prepared?

Inflation Is Coming. Are You Prepared?

In this article, we will…

Chinese Stocks Rebound After Regulatory Scare

Chinese Stocks Rebound After Regulatory Scare

Sweeping crackdowns across diverse sectors…

Small-Cap Energy Sectors With Big Upside

Small-Cap Energy Sectors With Big Upside

Over the past few decades,…

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