Tesla says report stating sales in China crashed 70% in October is 'wildly inaccurate' (TSLA)

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November 27, 2018 2:48 PM

Tesla slid as much as 2.27% early Tuesday after a report said its sales in China crashed 70% in October because of President Donald Trump's trade war.

Tesla CEO Elon Musk.

A report Tuesday indicated that
Last week, the electric-car maker cut prices on some models in China to help offset the impact of President Donald Trump's tariffs.
Tesla shares slid as much as 2.27% early Tuesday, trading near $338 apiece.

Tesla slid as much as 2.27% early Tuesday, trading near $338 a share, after a report said the company's vehicle sales in China slumped 70% in October amid the country's trade war with the US.

Reuters cited an official from the China Passenger Car Association as saying the electric-car maker sold just 211 vehicles in the world's largest auto market in October. The source attributed those underperforming sales to the ongoing US-China trade war.

"This is wildly inaccurate," a Tesla representative told Business Insider. "While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin."

On Thursday, Tesla said it was slashing prices on its Model X and Model S vehicles in China by 12% to 26% to help offset some of the impacts from President Donald Trump's trade war. The automaker told Reuters it was "absorbing a significant part of the tariff to help make our cars more affordable for customers in China."

Earlier this year, the Trump administration imposed tariffs on $250 billion worth of Chinese goods, prompting Beijing to retaliate. In July, Beijing raised tariffs on imports of US autos to 40% amid a worsening trade standoff.

Tesla in October secured a site in Shanghai for its first overseas Gigafactory, which could help it avoid the tariffs.

Tesla was up 8% this year through Monday.

Now read:

Tesla is sliding after slashing Model X and Model S prices in China
Tesla is gaining ground after securing a Shanghai site for its first overseas Gigafactory

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