Investors are concerned about Tesla's sluggish sales in China

Cambodia Compass report, 12th May - According to figures released by the China Passenger Car Association, the electric car leader sold less than 26,000 cars in China in April, down 27 percent from March. The decrease occurred as domestic EV sales improved for Chinese EV manufacturers such as Nio (NIO), Xpeng, and Li Auto.

Tesla was the subject of a protest by Tesla owners who protested about issues with their cars at China's largest auto show in Shanghai last month. Five Chinese regulatory agencies have questioned the efficiency of Tesla's Shanghai-made Model 3 vehicles. There were also rumors that China's military had barred Tesla vehicles from accessing its complexes, citing fears that onboard cameras might be used for surveillance, a charge refuted by Tesla CEO Elon Musk.

"It was estimated that its April revenues will be down sequentially," said Dan Ives, a tech analyst at Wedbush Securities. "The Telsa bull story relies heavily on China. The sales figures show that all of April's problems had an impact."

Stock prices are still suffering. Tesla has halted plans to buy land to develop its Shanghai plant into a global export center, according to Reuters, due to confusion over US-China trade tensions. Unnamed sources familiar with the company's thinking were quoted in the article.

Tesla did not respond to a request for comment on its April sales in China or its plans to construct a factory in Shanghai. The business publishes its worldwide revenues quarterly, rather than in specific markets or months. Tesla told Reuters that the Shanghai factory is "developing as expected," according to Reuters.

Tesla shares fell 3% in early trading after falling even more in pre-market trading, thanks to news of Chinese sales and a Reuters survey.

Tesla became one of the most valuable US companies of any kind in 2020, and by far the world's most valuable automaker, worth more than the six biggest automakers combined, thanks to a remarkable 743 percent share price increase.

However, despite maintaining their upward trend in the first few weeks of 2021, shares peaked in late January following the company's slightly disappointing fourth-quarter results. Even before Tuesday's slide, Tesla shares were down 29 percent from their high, putting the stock in bear market territory.

Source: Cambodia Compass comprehensive arrangement

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