Tesla from China (TSLA) has poor shipping data, which is also the latest bad news for pure electric vehicle manufacturers.
The China Passenger Car Association (CPCA) reported that Tesla’s transportation volume fell from China to 30,688 in February, down 49% from a year ago, compared with January (63,238). Meanwhile, compared with last year, China’s wholesale sales of new energy vehicles in China reached 840,000 units, an increase of 82%.
Tesla’s shares fell more than 7% in early trade and fell more than 30% this year.
As of 10:11:58 AM EST. The market is open.
Tesla’s transportation from China constitutes a mix of domestic purchases, as well as exports from other territories, meaning pure domestic sales of Tesla electric vehicles may be worse. Typically, January and February sales in China were slightly weaker due to the lunar holidays, but Tesla’s sales fell because of higher sales in the region in February.
CPCA notes that Chinese consumer preferences have shifted to electric vehicles such as hybrids and pure electric vehicles, indicating stronger demand for these vehicles. In addition, the trade group noted that the rise of DeepSeek and other AI technologies could be integrated in the cockpit of the car at a cheap price and was popular among consumers.
Tesla has been working to acquire its autopilot and FSD (fully autonomous driving) technology in China due to regulatory and data privacy issues. Tesla only recently launched the China Limited Edition Autopilot and encountered various problems.
China’s weakness, one of Tesla’s largest sales zones, is the company’s deep concern and after European sales also fell.
Bank of America analyst John Murphy lowered his Tesla price target from $490 to $380, citing weaker European sales and “potential sourness to the brand” among others.
The political activities of Tesla CEO Elon Musk seem to be affecting his and Tesla’s political activities. However, this effect is not so obvious in China, where musk is often considered favorable.
But Musk’s ties with the White House could become a barrier as the Chinese government could reject full FSD approval in China as a bargaining chip in tariff negotiations with the White House. The White House doubled its tariffs on Chinese goods this week to 20%.
Aside from political issues, Tesla’s trouble in China may boil down to more market-based power: Domestic automakers like Byd and others are making cheaper products that are popular with people and include technologies like Tesla’s unmatched autonomous driving capabilities.
