Tesla's China-Made Electric Vehicle Registrations Plunged 24% In July

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New registrations of Tesla Inc's (NASDAQ: TSLA) Shanghai-made electric vehicles slumped 24% month-on-month in China in July, according to a state-backed industry body.

What Happened: The Elon Musk-led automaker saw 11,456 EV registrations in the country in the month, according to data from China Automotive Information Net, as earlier reported by Bloomberg.

This was a 24% decrease over the 14,976 units that were registered in June, as per CAIN data.

It’s worth noting that June was a record month for Tesla in China. The automaker had overall 61,217 vehicles registered in the country as of July-end, according to CAIN.

Why It Matters: The registrations for the Palo Alto-based company’s vehicles declined at a time when it faces increased competition from both local and global automakers in China.

Registrations for electric vehicles made by local startup Nio Inc. (NYSE: NIO) quadrupled to 3,533 in July, according to CAIN.

Established players, including Bayerische Motoren Werke AG (OTC: BAMXF) and Mercedes parent Daimler AG (OTC: DDAIF), are also gearing up to launch electric models, Bloomberg noted.

Chinese EV maker Li Auto Inc. (NASDAQ: LI) raised .1 billion in its New York initial public offering late last month.

Tesla has been actively hiring in China as it prepares to start Model Y production in the country, according to a Reuters report.

Price Action: Tesla shares closed 1.83% higher at $1,650.71 on Friday, and traded about 0.3% lower in the after-hours session.

 

 

 

 

 

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