Tesla’s sales of Model 3 vehicles come in 64% down in China in April

According to CPCA (China Passenger Car Association), Tesla Inc. (NASDAQ: TSLA) sold a total of 3,635 Model 3 (Shanghai-manufactured) in China in April that marked a massive 64% decline as compared to March.

The U.S electric car manufacturer, however, is known to report fewer sales in the 1^st month as compared to the remaining 2 months of the quarter. As per the online briefing of the industry body, Tesla manufactured more than 10K units at its Shanghai factory in April.

Electric car sales were 9.8% up in China in April

CPCA data in the previous month had shown an increase from 3,900 vehicles sold in China in February to a record 10,160 vehicles in March. In terms of counting method, CPCA differs from that of Tesla’s deliveries.

Tesla saw a decrease in Model 3 sales in China in April despite a 9.8% month-on-month increase in overall sales of electric cars in the same month in the 2^nd largest economy of the world. As per CPCA, demand for automobiles is also starting to recover after the Coronavirus pandemic that brought the industry to a near halt in China in previous months.

Elon Musk’s company did not respond immediately to a request for further comment on the news.

Tesla threatens to move out of California

In separate news, Tesla also announced to have filed a lawsuit in California against the local authorities on Saturday. Reportedly, the health department of Alameda County is opposing the company’s intention of resuming operations at its Fremont factory, to minimize the fast transmission of the Coronavirus. Upon further pressure, CEO Elon Musk threatened, he will move Tesla’s headquarters and the company’s future programs to Texas or Nevada.

Tesla said that it was being responsible with the restart plans as the company devised precautionary measures including online video training for its employees, temperature screening, partition areas in the work zone, rigorous cleaning, a requirement for its workers to wear PPE (personal protective equipment), and disinfecting protocols, but the health official at the Alameda Country failed to return the company’s calls and emails.

The electric carmaker also said that Alameda was ignoring the governor’s order and is not complying with the constitution of California.

At £665 per share, Tesla is currently around 90% up year to date in the stock market after dropping to £293 per share in March. The company has a market cap of £123.24 billion.