Tesla’s China shipments extend slump, bucking broader sales boom

[HONG KONG] Tesla’s vehicle shipments from its China factory fell for an eighth straight month, extending a global sales slump as chief executive officer Elon Musk pledges to renew his focus on the automaker.

The EV maker shipped 61,662 Model 3 sedans and Model Y sport utility vehicles from its Shanghai plant in May, down 15 per cent from the same time last year, according to preliminary data from China’s Passenger Car Association. The group did not provide a breakdown of domestic sales and exports.

The slump contrasts with robust nationwide sales of new-energy vehicles, including both EVs and hybrids, which are estimated to have risen 38 per cent to 1.24 million units, the data show.

The snapshot from China signals the downturn in Tesla’s sales across major global markets may have further to run. Registrations across some of Europe’s biggest EV markets tumbled in April even as Tesla started shipping the redesigned Model Y SUV to customers. Chinese EV giant BYD sold more EVs in Europe than Tesla for the first time ever in April, according to market researcher Jato Dynamics.

Musk has said he’s committed to leading Tesla and expects to pare back his political spending after his level of engagement with the carmaker came under growing scrutiny. His involvement in global politics and close ties to US President Donald Trump have sparked protests across the US and Europe and has weighed on EV sales. BLOOMBERG