Since opening its factory in Shanghai, China has become an increasingly large part of Tesla’s growth story. In the first quarter of 2021, that was on full display with 29.2% of the company’s overall revenues coming from the country. However, an industry report indicates that may be changing.
In the past few months, Tesla has been under pressure in the Chinese media due to reports of break failures and other manufacturing defects from the cars it builds in China. But, it hasn’t appeared to have a major impact on the company’s growth in the world’s second largest economy.
However, a report on April auto sales for new energy vehicles in the region show that trouble may be brewing. The report says that in April the company sold 25,845 cars made in China, compared with 35,478 in March, showing a significant decline.
Not all automakers saw the same decline during April. BYD, the Chinese automaker backed by Warren Buffett came in at a close second, selling 25,450 new energy vehicles in April, up from 23,906 in March.
Do you think April marks the beginning of a troubling trend, or is it just a blip on Tesla’s path to EV dominance?