Tesla Inc. shares tumbled on a report that the electric-car maker’s Chinese orders dropped by almost half in May.
The stock, which was already down more than 30% from the late January peak through Wednesday, fell 5.3% Thursday.
The shares also slipped after a U.S. regulator disclosed recalls of more than 5,500 Model 3 and Y vehicles as well as almost 2,200 Model Ys over separate seat-belt flaws.
Tesla’s monthly net orders in China dropped to about 9,800 in May from more than 18,000 in April, according to The Information, a San Francisco-based tech news company, which cited a person with knowledge of the data.
That’s just the latest in a string of reports that seem to suggest a sales slowdown in a country widely regarded as one of the most important markets for the industry.
Dan Levy, an analyst at Credit Suisse Group AG, said Wednesday that Tesla’s market share in global electric-vehicle sales had dropped in April – adding that the company lost ground in China, Europe, and the U.S.
Tesla has now had recalls emerge on back-to-back days. The U.S. National Highway Traffic Safety Administration posted a notice Wednesday saying the carmaker will inspect, tighten, or replace brake calipers that could be loose on almost 6,000 Model 3 and Y vehicles.
On 2 June, Tesla Inc. shares fell by the most in three weeks, sitting out of the broader market’s advance, after electric-vehicle sales figures showed a loss in global market share for April.
Tesla’s global market share decreased to 11% in April from 29% in March, likely marking the lowest such reading since January 2019, according to Levy.
He said Tesla lost ground in China, Europe, and the U.S., where its dominance has been eroded by new competition and recent price hikes.