The company's monthly net orders in China dropped to about
9,800 in May from more than 18,000 in April, the report https://bit.ly/3phOPE4
said, sending shares down nearly 5% in afternoon trading.
Tesla did not immediately respond to a request from Reuters
for comment.
China is the electric car maker's second-biggest market
after the United States and accounts for about 30% of its sales. Tesla makes
electric Model 3 sedans and Model Y sport-utility vehicles in a Shanghai plant.
Tesla had won strong backing from Shanghai when it built its
first overseas factory there in 2019. Tesla's Model 3 sedans were the
best-selling electric vehicles in the country before they were overtaken by a
much cheaper micro EV made by the joint venture between General Motors and SAIC
Motor.
But the U.S. company is now facing scrutiny over its
handling of customer complaints over quality issues.
Last month, Reuters reported that staff at some Chinese
government offices have been told not to park their Tesla cars inside
government compounds due to security concerns over cameras installed on the
vehicles.
In response, Tesla is trying to boost its engagement with
mainland regulators and is beefing up its government relations team, sources
have told Reuters. It has set up a data centre in China to store data locally
and plans to open a data platform for customers.
Tesla sold 11,671 Model 3 and Model Y vehicles in April in
China compared with March, when it sold most of its 35,478 China-made cars
locally, according to Chinese auto industry body CPCA.
In China, Tesla competes with several EV startups including
Nio Inc, Xpeng Inc as well as conventional EV companies like BYD. -Reuters