Tesla: 22,000 electric vehicles sold in May

  •   22/06/2021 - 07h38
  •   DEHOUI Lionel

The China Passenger Car Association reported that car sales increased in May. They rose by 1% year-on-year to 1.62 million units sold. At the same time, sales of electric vehicles rose 177% to 185,000 units. Tesla ended the month on a high note with nearly 22,000 sales.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500
Tesla: 22,000 electric vehicles sold in May

Tesla's performance in May

At Tesla, sales of electric vehicles manufactured in Shanghai totaled 21,936. The California-based carmaker also exported 11,527 vehicles, with total sales up 29 percent.

So despite the growing number of negative rumors and regulatory scrutiny of Tesla (due to customer reports of brake failures), sales have rebounded. Similarly, the group was not affected by the reduction in production in the automotive industry. The latter has been struggling due to a global shortage of chips.

According to the association, global sales of electric vehicles more than doubled year-on-year. This, with a 186% increase to 162,000 in May. However, some pawns in the Chinese auto industry are questioning the veracity of the association's data.

 

Chinese orders fall and Tesla shares plummet

Although Tesla Motors ranks among the top 10 sellers of renewable energy vehicles in China, the report says local startups such as Nio also performed well in May. For Tesla, orders in China dropped by 50% compared to April.

According to The Information, between April and May 2021, the company's orders were cut in half in China. In fact, Elon Musk's shares are moving in the same way as China's orders. On June 3, they fell by 5%, and since the beginning of 2021, they have fallen by 15%.

As a reminder, China is the world's second-largest electric vehicle market and the largest auto market. The Middle Eastern empire accounts for 30% of Tesla's sales. Elon Musk's company produces the Model 3 and Y at a factory in Shanghai, which makes about 500,000 vehicles a year. These are sold in the Chinese market, but are also exported to Asia and Europe.

 

Tesla gets dethroned on Chinese soil

The establishment of the Shanghai factory was supported by the municipal government. The Model 3 was a big seller in China, until the arrival of the Micro EV (a cheaper competitor), which overtook it.

In fact, US-China trade tensions played a role in this. In March 2021, China banned its military and officials from buying Tesla models. However, according to national data regulations, Tesla's announcement, of establishing a data center in China, could mark the company's recovery.

This view is supported by job vacancies, including "Legal and Government Affairs" in China. As such, Tesla's job openings in Shanghai are ramping up.