Tesla Denies Claims Of 70% Sales Drop In China In October

NOV 27 2018 BY MARK KANE 23

40% import tax may have limited Tesla sales in China, but not by the claimed 70%.

While general plug-in electric car sales in China are reaching all-time records in October, Tesla EV sales sank by 70% year-over-year, or so says Reuters.

According to Reuters, which says it obtained sales results from China Passenger Car Association, Tesla sold only 211 electric cars last month in China. The automaker currently offers two models – S and X, while the Model 3 is expected in March.

However, Tesla disagrees with this assessment. The automaker says the 70% claim is “off by a significant margin,” but stops short of saying what the actual sales figure was for October.

Quoting Tesla:

“This is wildly inaccurate. While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin.”

Poor sales for Tesla were expected due to the increase of import duty from the U.S. from an already insanely high 25% to a ludicrous 40%. That would explain why Tesla lowered prices and decided to absorb the higher taxes.

After the prices were lowered, the Tesla stand at the 2018 Guangzhou Auto Show was flooded by consumers, many of which placed orders.

Source: Reuters, CNBC

Categories: China, Tesla

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23 Comments on "Tesla Denies Claims Of 70% Sales Drop In China In October"

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Chris O

I already noticed this article as negatively biased against Tesla with no mention of the fact that Tesla has a handle on the situation with a temporary price drop to counter the effect of tariffs until the last line but now it turns out to be an outright lie. Welcome to 21st century journalism where clicks are everything and truth is nothing.

Impartial Observer

Why are you deleting my posts?

Steven Loveday

Tired of you harassing people. Cut it out. You’ve been warned and all your messages will now go into moderation before being approved. We don’t put up with nonsense like yours. Find another site that does or clean it up.

Impartial Observer

How did I harass Chris O in my comment? What are you talking about? I didn’t call him any names, insult him, or personally attack him. I just said that his assertion that the Reuters article was “negatively biased” against Tesla was ridiculous.

I honestly don’t know how I could have “cleaned up” my comment for it to pass moderation. Was the facepalm emoji that I used considered “nonsense”?

Steven Loveday

It wasn’t specifically that comment, but several others in which you argue with people, call them out, call them names, and just attempt to start trouble. Please stop sending messages about why you are moderated. I’m not going to keep approving them and responding to them. If you want to talk about electric vehicles and be kind to others send those messages and they will be immediately approved. Thank you for your cooperation.

Scott

Seems you have no manners.

John

Whoops…

Doggydogworld

Tesla showed a ~20% drop in China sales in Q3. They sold $400m vs. the usual $500m. Beyond that Tesla provides no data. I think they’d just live with a 20% drop on S/X while perhaps lowering the Model 3 price a little until they start getting tariff relief by moving portions of production to Shanghai next year.

The decision to dramatically cut S/X pricing says to me sales dropped a lot more than 20% in Oct/Nov.

Vexar

Except, quite obviously, it coincides with the trade war. They are building a factory there, as you know, which eliminates the tariffs. I can’t imagine they won’t at least be doing some kind of general assembly by June, so price now, take a hit on a trickle of orders until something comes online under the Tesla Gigafactory 3 and there’s an incremental break on pricing.

Doggydogworld

Yes, the drop is obviously due to tariffs.

Shanghai will reduce tariffs, not eliminate them. At least not for several years. And not at all on S/X unless Tesla changes plans again.

ffbj

(I would say many of whom, but whatever, whichever,whomever)
https://www.quora.com/When-do-you-write-many-of-which-and-when-many-of-whom
.
I think that the Chinese should give Tesla a pass, as for one it would be a dig at Trump, who has no love for Tesla, but is in a quandary, as he can’t really disrespect them as he has Ford and GM. After all they are adding jobs and plants not laying off people in droves and shuttering plants. Besides the Chinese want Tesla evs and Tesla is building a plant there.
As far tariffs goes both countries lose, who is the bigger ass. or panda, is is open to debate.
But they are both being big babies in my opinion

John-EU

And a major Tesla shareholder is Chinese. I think it would be a great move by China to fully eliminate tariffs on EVs. The guy in DC can expect some phonecalls from GM, Ford anf FCA.

Doggydogworld

China will do everything possible to boost Chinese companies and hamstring outsiders. As they’ve done for more than two decades.

John Doe

211 is what was registered in October. Maybe Tesla has sold more, but they have not been registered with license plates yet? We’ll see next month.

With all the price cuts on Model S and X, I’m sure Tesla feels the extra 40% retaliation tax the Chinese have added on imported cars from the US.
Profit must be slim with those prices.

Oglark

Where is the EVANNEX Tesla fawning counter article

esto_perpetua

“However, Tesla disagrees with this assessment. The automaker says the 70% claim is “off by a significant margin,”. Okay, fine. Now show us your number with the evidence to disprove the Chinese.

Allan

It’s not the Chinese, it’s Reuters, the same tabloid rag that brought up worker safety conspiracies last year, OSHA did an investigation, found an extension cord needed to be moved.

Reuters still sticking to that story by the way, even though their sources had industry and union ties. This is not a credible news outlet, just a tabloid.

Scott

Yeah you cant beleive China in many things and we know Reuters has been very anti Tesla in the past.

The math is simple however. Higher taxes(baby trump can call it a tariff but that is just another word for tax) for american cars in China and the fact that there is more EV options in China so Tesla’s sales will take a hit.

magama52

Tesla will after the end of the quarter as always, so sit tight.

KumarPlocher

What’s the point of this article? Most of the readers have never heard of this negative claim, so the article is basically saying “Tesla strongly denies this outrageous claim” with no evidence either way. Seems unnecessary.

Yves Laurin

Sales are down, that is for sure, If I was chinese and I wanted to buy a Tesla, I would simply postpone my purchase so I can buy directly from China to save big $$$$.

Jeff

“While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin.”

You mean, Tesla discloses monthly sales numbers when they’re good, but does not disclose monthly sales numbers when they’re bad.

Jason Wang

Despite the high import tax, Tesla has still lowered its price in China this month.If Shanghai ‘dreadnought’ factroy are built, sales will improve.