Report, Energy News, ET EnergyWorld
The company’s monthly net orders in China fell to around 9,800 in May, from more than 18,000 in April, the report said, pushing shares down nearly 5% in afternoon trading.
Tesla did not immediately respond to a request for comment from Reuters.
China is the electric carmaker’s second-largest market after the United States and accounts for around 30% of its sales. Tesla manufactures Model 3 electric sedans and Model Y sport utility vehicles at a plant in Shanghai.
Tesla had strong support from Shanghai when it built its first overseas plant there in 2019. Tesla’s Model 3 sedans were the best-selling electric vehicles in the country before being overtaken by a micro EV much. cheaper manufactured by the joint venture between General Motors and SAIC engine.
But the US company is now facing serious scrutiny in its handling of customer complaints about quality issues.
Last month, Reuters reported that staff at some Chinese government offices were ordered not to park their Tesla cars on government premises due to security concerns with the cameras installed on the vehicles.
In response, Tesla is trying to strengthen its engagement with regulators on the continent and strengthen its government relations team, sources told Reuters. It has set up a data center in China to store the data locally and plans to open a data platform for customers.
Tesla sold 11,671 Model 3 and Model Y vehicles in April in China compared to March, when it sold most of its 35,478 Chinese-made cars locally, according to China’s auto industry body CPCA.
In China, Tesla competes with several electric vehicle startups including Nio Inc, Xpeng Inc as well as conventional electric vehicle companies like BYD.