Tesla sales in China fell in September according to an unofficial report from the China Passenger Car Association.
Tesla Inc (NASDAQ: TSLA) stock fell nearly 2% on Monday morning after news that the company’s sales crashed in China. According to a China Passenger Car Association (CPCA) report, sales for the giant EV maker’s China-made vehicles plunged 10.9% year-over-year in September.
According to the report, the company sold 74,073 EVs made in China in September. The report also noted that Model 3 and Model Y sales fell 12% between August and September. Interestingly, Chinese rival EV maker BYD delivered 286,903 passenger vehicles in September, a 42.8% increase from the 200,973 it delivered in the same period last year.
Last week, Tesla published a production and delivery report which showed that the company missed Wall Street expectations. Tesla said it produced 430,488 in the third quarter of the year and delivered 435,059 vehicles. Analysts polled by StreetAccount had predicted that deliveries would hit 461,640.
Following the missed targets, the company reduced US prices for its Model 3 and Model Y vehicles. The starting price for the Model 3 fell from $40,240 to $38,990, while the long-range version fell to $47,240 from $45,990. Tesla also reduced the Model Y SUV to $52,490 from $54,490. Regardless of the missed expectations and the price cuts, Tesla maintained its target to deliver 1.8 million vehicles in 2023.
Tesla’s recent history features price hikes and cuts. In May, the company increased the prices of its Model X and Model S vehicles in China by 19,000 yuan ($2,751). Tesla bumped the Model S from 789,900 yuan to 808,900 yuan and the Model S Plaid to 1,028,900 from 1,009,900. Earlier that week, Tesla had increased the prices of its Model Y and Model 3 vehicles in several markets, including China and the US.
Tesla Stock and Upcoming Factory
As of this writing, TSLA is exchanging hands at $258.12 in after-hours trading after falling 0.6% from its previous close at $259.67. MarketWatch data shows that Tesla stock has climbed a little over 3% in the last 5 days, but has lost over 5% in 1 month and 3.69% in 3 months. However, the stock has seen more than 110% in year-to-date (YTD) returns.
Last month, Tesla stock rose by more than 10% after financial services giant Morgan Stanley sent a bullish note to investors. Morgan Stanley predicted that Tesla will begin selling AI technology to automakers and will also reduce the cost of chips by adopting its own GPUs.
Tesla may also enjoy a potential boost if it sets up its new factory in Turkey. In September, Tesla CEO Elon Musk met with Turkish President Recep Tayyip Erdogan, who invited Musk to build the company’s next factory in Turkey. According to reports, Erdogan told Musk that Tesla will thrive in the region, citing Turkish electric car company Togg as an example. Erdogan also offered Musk a collaboration between Turkey’s space program and the CEO’s aerospace company SpaceX.
Musk reportedly responded positively, stating his interest in establishing a Tesla presence in Turkey. He also said Turkey is one of the “most important candidates” for the new Tesla factory. While Musk has said he intends to select a new location by the end of 2023, he has not specified any options.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
