Tesla sinks on weak China registrations before brunt of coronavirus

Tesla Inc. shares fell after China registration data indicated a significant sequential slowdown in demand before the electric-car maker started feeling the brunt of any impact from the coronavirus.

File photo (AP)
File photo

Registrations of new Tesla cars plunged 46% to 3,563 in January from December, according to state-backed China Automotive Information Net, which gathers industry data based on insurance purchases. Of the January registrations, 2,605 were for cars built in China.

Also Read : Tesla’s China sales in holiday season drop due to coronavirus outbreak

While Tesla had bucked the trend in China’s waning electric-car market in the previous two months, the January drop shows that the U.S. brand isn’t immune to challenges the broader industry is facing. China’s car market probably is headed for a third straight annual decline as the coronavirus outbreak exacerbates a slump started by an economic slowdown and trade tensions.

Also check these Vehicles

Find more Cars
Tesla Model 3 (HT Auto photo)
UPCOMING
₹70 - 90 Lakhs* *Expected Price
View Details
Tesla Model S (HT Auto photo)
UPCOMING
₹70 Lakhs - 1 Cr* *Expected Price
View Details
Bmw X3 M40i (HT Auto photo)
₹86.5 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Bmw 2 Series Gran Coupe (HT Auto photo)
₹37.9 - 42.3 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Bmw X5 (HT Auto photo)
₹75.5 - 90.9 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Bmw 5 Series (HT Auto photo)
₹63.4 - 73.5 Lakhs***Ex-showroom price
Add to compare
Check latest offers

Also Read : Tesla, Panasonic ending solar-roof partnership at New York plant

Tesla shares dropped as much as 6.8% shortly after the start of regular trading. The stock had soared 86% this year through the close Wednesday, partly driven by optimism about the company starting to produce Model 3 sedans at a newly built plant near Shanghai.

In total, deliveries of new-energy vehicles in China from carmakers to dealerships tumbled 54% last month, according to the China Association of Automobile Manufacturers, an industry body.

Tesla began delivering locally built Model 3s to customers in China last month, seeking to boost volumes amid rising competition from the likes of BMW AG and Daimler AG, which are also bringing out new electric cars. The sedans assembled domestically qualify for tax exemptions and subsidies the company has missed out on in the past.

The locally manufactured models helped Tesla’s January registrations increase from just 853 a year earlier.

The timing of China’s Lunar New Year complicates year-over-year comparisons in the first months of 2020. The holiday fell in January this year and in February in 2019.

But business has ground to a halt this month due to the coronavirus, and automakers are expected to come up well short of last year’s sales levels in February. Deliveries to dealers this month are set to slide about 75%, resulting in about a 40% drop in the first two months of 2020, according to the China Passenger Car Association.

First Published Date: 28 Feb 2020, 08:02 AM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
21% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 315 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 498 Rs. 549

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city