Tesla, Inc.'s (NASDAQ: TSLA) China sales dropped in April, and even the most gloomy estimates would have been disappointed. Given the Giga Shangai's extended downtime earlier this month to comply with COVID-19 limitations, expectations were low going into the data release.
What Happened: According to data from the China Passenger Car Association, Tesla's Giga Shanghai manufactured 10,757 vehicles in April and sold 1,512 vehicles domestically.
During the month, the company did not export any automobiles, which is contrary to industry practice of concentrating on exports in the first half of the quarter.Tesla delivered 65,814 Giga-Shanghai cars in March, with 60 units exported and the remaining 65,754 sold in China. Despite a 2-day outage in the middle of the month and another near the end, the figures were excellent.
In April 2021, 40,019 units were sold, with 25,845 units sold domestically and 14,174 units exported.
Tesla's poor performance in April contrasts with the industry's positive performance. Retail sales of new energy vehicles, which include both battery EVs and plug-in hybrids, climbed 78.4 percent year over year in China in April, according to CPCA data. EV sales increased by 63.3 percent.Why is it significant? The COVID-19 lockdowns, which prompted the closure of Tesla's Giga Shanghai plant, halted production for roughly three weeks in April. EV manufacturers also suffered component shortages as geopolitical tensions rose.
However, BYD Company Limited (OTC: BYDDF), funded by Warren Buffett, reported a good April performance. In April, the company produced and sold 57,593 and 57,403 electric vehicles, respectively.
Other EV companies including Nio, Inc. (NYSE: NIO), XPeng, Inc. (NYSE: XPEV), and Li Auto, Inc. (NASDAQ: LI) saw a drop in sales, but nevertheless delivered 5,074, 9,002, and 4,167 units for the month.
According to Benzinga Pro statistics, Tesla stock rose 3.24 percent to $812.62 in premarket trading on Tuesday.
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