Tesla Stock Tumbles Again As China Registrations Falter Amid Covid Outbreak
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According to insurance data, the total sales of new energy vehicles (NEV) in China from December 19th to December 25th were about 182,000 units. That’s a 48% increase compared to last year and a 12.6% increase from the previous week, he reported on Tuesday, CnEVPost. But despite the year-end discounts, Tesla’s registrations fell to an estimated 8,915 units for the week. His Tesla registrations for the first three weeks of December were 11,670, 12,977 and 10,254 respectively.
Widespread outbreaks of the virus have been reported across the country as China eased Covid restrictions. I warn you that it is possible.
Reuters reported on Tuesday that Tesla halted production at its Shanghai factory on December 24. Employees said he is due to return on January 1, 2023. Tesla will be in production for his 17 days from January 3rd to January 19th, and will suspend production of the EV from January 20th to January 31st for the Chinese New Year celebrations. Reuters.
Year-end production shutdowns have been widely reported in recent weeks. Tesla’s Shanghai factory was already slowing production at the beginning of the month as inventory quickly built up despite price cuts in late October and significant year-end incentives.
Tesla, which has previously denied halting production, said the shutdown was for annual planned maintenance.
Tesla shares fell 5.2% in pre-market trading early Tuesday. Last week, Tesla’s stock plunged 18% to 123.15 after plunging 16.1% the previous week. These are the worst weekly losses since his Covid crash in March 2020. TSLA stock is at his 27-month low, down 70% from its peak in November 2021.
Meanwhile, Tesla China’s rival Nio (NIO) on Tuesday lowered its fourth-quarter shipment guidance.Chinese EV giant BYD (BYDDF) has also warned of reduced production due to Covid among its staff.
Chinese EV registration
Despite Covid, BYD last week reported a significant increase in weekly EV shipments despite weekly declines for Tesla and Nio.
BYD vehicle registrations for the week ending December 25 were 51,636, up from 50,462 and 44,817 in the previous two weeks. BYD said last week that production was down by 2,000 to 3,000 units per day due to workers’ COVID-19 infections.
Nio’s estimated number of registrations decreased from 3,464 to 2,690. On Tuesday, Nio lowered its guidance for fourth-quarter shipments, citing his Covid outbreak.
The EV startup now expects to deliver 38,500 to 39,500 vehicles in the fourth quarter, well off its previous guidance of 43,000 to 48,000. This puts his December sales between his 14,263 and 15,263 units, which is still a record number.
“We are facing challenges in delivery and production, along with certain constraints in our supply chain, due to the outbreak of the Omicron coronavirus variant in a major city in China,” the company said in a statement.
China has downgraded the emergency status of the coronavirus outbreak despite reports that infections are rising rapidly. China also ended quarantine rules for inbound travelers on January 8, easing restrictions on airline capacity and international travel.
Fellow China-based EV startup lee auto (LI) registrations improved to 5,155 from last week’s 4,558 and 3,013. XPeng (XPEV) is another company looking to challenge Tesla in China, up 2,536 to 3,257 last week.
Tesla Stock: Future Outlook
Tesla is likely to announce global Q4 and full-year deliveries on January 2nd. His EV companies in China, Nio, Li Auto and XPeng, are likely to release their December, Q4 and 2022 delivery data on his Sunday, January 1st. His Warren Buffett-backed BYD is expected to file its own report in early January.
Over the weekend, Nio unveiled the EC7 Coupe SUV. This could compete with the Tesla Model Y in the high-end market. EC7 deliveries will begin in May 2023. Nio also unveiled his revamped ES8 SUV. It is now on the NT 2.0 platform as well as a brand new model. Shipping will begin in June.
Chinese EV makers are rolling out and unveiling new models as analysts warn of the auto industry in 2023, while Tesla maintains a two-model approach in China.
In addition to Tesla shares, other Chinese EV makers suffered early losses on Tuesday. Nio shares fell 4.7% before he opened. LI stocks and XPeng fell more than 1%. US over-the-counter BYD shares rose about 1%.
Follow Kit Norton on Twitter @Kit Norton for more coverage.
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