Tesla’s love affair with China will weather recent sales slump, backlash over safety concerns, say analysts

A report by technology news website The Information said the carmaker’s vehicle orders in China plummeted in May

The American giant has had a rocky few months in China involving recalls, questions over safety issues and a grilling from the authorities

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Tesla has had a rocky few months in China. Photo: EPA-EFE

Published: 7:30pm, 4 Jun 2021Updated: 10:58pm, 4 Jun 2021

The love affair between American electric vehicle (EV) giant Tesla and Chinese motorists has hit some bumps along the way, not least a recent slump in sales amid a public backlash over quality. But the romance has still got some mileage, according to market observers.

A report by technology news website The Information, citing a single source familiar with the data, said billionaire Elon Musk’s company saw its vehicle orders in China plummeted to about 9,800 in May. That compares with deliveries of 25,845 in April and 35,478 a month before that, according to data from the China Passenger Car Association (CPCA).

The dramatic drop could translate to record-low deliveries for Tesla in China in this year.

Responding to enquiries from the Post, Tesla, still the runaway leader in China’s premium electric vehicle segment, said it based its car deliver data on official figures from the CPCA.

Tesla’s shares dropped more than 5 per cent in New York on Thursday after The Information’s report.