Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Tesla shares slump as coronavirus hits China car registrations

Published 02/27/2020, 12:34 PM
Updated 02/27/2020, 12:37 PM
Tesla shares slump as coronavirus hits China car registrations

(Reuters) - Shares of Tesla Inc (O:TSLA) fell as much as 14% on Thursday on concerns about the impact of the coronavirus on the electric-car maker's vehicle registrations in China.

Data from LMC Automotive showed that 3,563 Tesla vehicles were registered in China in January, up from 853 vehicles a year earlier, but down from the 6,613 vehicles registered in December.

Tesla registrations fluctuate significantly from month to month, LMC data showed. The automaker typically delivers many more vehicles in the final month of a quarter than in the first month. In October 2019, Tesla owners registered just 763 vehicles, LMC data showed.

Tesla did not respond to requests for comment.

The selloff in Tesla shares highlights the growing concern about the health of the Chinese auto market as the government and companies contend with the disruption of the coronavirus outbreak.

China Association of Automobile Manufacturers had earlier said https://in.reuters.com/article/us-china-autos/china-auto-sales-likely-tumbled-18-in-january-coronavirus-seen-taking-heavy-toll-idINKBN2070K3 that overall vehicle sales fell by almost a fifth in January, hurt by Lunar New Year holidays that started earlier than last year and by the coronavirus disruptions.

The electric-car maker said https://in.reuters.com/article/china-health-shanghai/shanghai-to-help-tesla-resume-production-amid-coronavirus-spread-idINKCN202060 earlier this month that the outbreak would delay deliveries of its Model 3 cars in China.

While the virus originated in China's Wuhan province late last year, local governments began imposing travel curbs and warning residents to avoid public spaces in the last two weeks of January.

Tesla shares were trading down at $685 and were set for their fourth consecutive session of losses. Tesla's stock has, however, jumped about 60% so far this year.

Latest comments

Sound of bubble bursting is coming up
tesla was over priced to begin with..
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.