Tesla, Inc.'s TSLA China sales plummeted in April, and the magnitude of underperformance would have disappointed even the most pessimistic of forecasts. Expectations were muted, going into the data release, given the extended shutdown of the Giga Shangai during the month to fall in line with the COVID-19 restrictions in place.
What Happened: Tesla's Giga Shanghai produced 10,757 vehicles in April and sold 1,512 vehicles domestically, Reuters reported, citing data from the China Passenger Car Association.
The company did not export any vehicles during the month, going against the norms of focusing on exports in the first half of the quarter.
In March, Tesla delivered 65,814 Giga-Shanghai-made cars, out of which 60 units were exported and the remaining 65,754 vehicles were sold in China. The strong numbers came despite a 2-day disruption in the middle of the month and another toward the end of the month.
The year-over-year comparison also shows a decline from the 40,019 units sold in April 2021, comprising domestic sales of 25,845 units and exports of 14,174 units.
Tesla's dismal showing in April is in contrast to the fairly strong performance of the industry. CPCA data showed that retail sales of new energy vehicles, a term used for denoting both battery EVs and plug-in hybrids, increased 78.4% year-over-year in China in April. EV sales climbed 63.3%.
Related Link: Why This Analyst Remains 'Steadfastly Bullish' On Tesla Story Following Q1 Deliveries
Why It's Important: Tesla's production was disrupted for about three weeks in April due to the COVID-19 lockdowns that forced shuttering of its Giga Shanghai plant. EV makers also faced component shortages amid the intensification of geopolitical tensions.
But this did not deter Warren Buffett-backed BYD Company Limited BYDDF from reporting a strong April performance. The company produced and sold 57,593 and 57,403 EVs, respectively in April.
Other EV startups such as Nio, Inc. NIO, XPeng, Inc. XPEV and Li Auto, Inc. LI did see a pullback, but delivered 5,074, 9,002, and 4,167 units, respectively, for the month.
In premarket trading, Tuesday, Tesla stock was seen rising 3.24% to $812.62, according to Benzinga Pro data.
Read Next: Tesla Said To Halt Shanghai Production Again — This Time Due To Supply Woes
Photo: Courtesy of Tesla
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