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Tesla's China Sales Dropped 64% In April, Even As Wider Market Recovered, CPCA Says

Tesla Inc. (NASDAQ: TSLA) sold 3,635 units of its Shanghai-made Model 3 cars in China in April, the China Passenger Car Association (CPCA) said Monday.

Benzinga · 05/11/2020 10:16

Tesla Inc. (NASDAQ: TSLA) sold 3,635 units of its Shanghai-made Model 3 cars in China in April, the China Passenger Car Association (CPCA) said Monday.

What Happened

The number is a 64% decline in sales compared to March, when it sold 10,160 vehicles, according to CPCA data first reported by Reuters.

The drop comes as the wider auto market saw a 9.8% rise in the country, CPCA said.

In February, Tesla had sold 3,900 Model 3 units, as per the Association. The body uses a different counting method than the company, Reuters noted.

The Palo Alto-based automaker produced over 10,000 Model 3 units at the Shanghai Gigafactory in April, the data said, according to Reuters.

Why It Matters

Tesla made record sales in China in March even as the overall car sales in the country declined by 40.8%, according to CPCA data reported by Reuters last month.

The automaker's U.S. factories remain shut under government orders to curb the spread of the novel coronavirus (COVID-19), but production at the Shanghai plant resumed in March.

The Shanghai gigafactory was reported shut earlier this week, but Tesla dismissed it as a regular procedure.

Analysts see strong demand in China as the way forward for Tesla to recover from the pandemic impact.

Price Action

Tesla shares closed 5% higher at $819.42 on Friday. The shares were mostly flat in the after-hours session.

Image Credit: Tesla.com.