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This week in EVs: Tesla's trouble abroad | Pro Recap

Published Dec 10, 2023 08:35AM ET
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Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Tesla China deliveries drop; Scandinavian unions come together to fight EV giant; and Nio considers expanding layoffs.

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Tesla takes a dip in China

The China Passenger Car Association (CPCA) released data this week showing that electric vehicle giant Tesla Inc (NASDAQ:TSLA) suffered a 17.8% drop in deliveries from the company’s gigafactory in Shanghai compared to the same time last year. The report marks Tesla’s biggest fall since December of 2022 when Tesla’s China-made EVs dropped 21% on the year.

Chinese rival automaker BYD (SZ:002594), however, recorded an impressive 301,378 deliveries, marking a 0.09% increase from October and a substantial 31% surge compared to the same period last year.

At the start of this year, Tesla triggered a price war in China and has since roped in more than 40 brands. However, its share of the country's EV market dropped to 5.78% in October from 8.7% in September.

Since late October, Tesla has reversed course, raising the price on its Chinese vehicles five times, even as EV demand continues to slow in the country.

cyber monday


Unions unite in Scandinavia

At the same time, over 4,000 miles away, in Denmark, Tesla is facing union opposition in the form of sympathy strikes.

Danish 3F, the largest union in Denmark, has decided to join with IF Metall and has pledged to back the Swedish metalworkers in a strike against the EV giant.

Members of the Danish union, including harbor workers and drivers, have said that they would refuse to unload and transport Tesla vehicles bound for Sweden at Danish ports for approximately two weeks.

Swedish labor associations have been taking action against Tesla since October. The unions are hoping to compel the electric vehicle manufacturer to agree to collective bargaining agreements with mechanics. The strike has broadened through solidarity measures, like halting the delivery of mail to Tesla.

CEO, Elon Musk has characterized the actions against his company as “insane”.

In a further setback, Tesla lost a legal dispute against Sweden’s postal service, PostNord. The service refused to deliver license plates for the Tesla vehicles, hoping to pressure the company into signing the collective agreement.

A Swedish court ruled that, for now, PostNord is not obligated to distribute license plates to Tesla.

This news follows an announcement Thursday by Norway’s largest private sector labour union, Fellesforbundet, saying that the union would tart blocking transit shipments of Tesla cars meant for the Swedish market.

Shares of TSLA ended the week up 3.23% after reaching a weekly high of $245.69/sh on Tuesday.

Nio mulls bigger layoffs

Reports surfaced Thursday suggesting Chinese electric automaker, Nio Inc (NYSE:NIO) was considering expanding their plans to reduce its workforce beyond the previously planned 10%.

According to the reports, the electric automaker directed specific departments to draft extra lists for potential layoffs, potentially increasing the initial reduction from 10% to 20% or even as much as 30%.

The intended cuts are anticipated to primarily impact non-essential sectors or areas that might not yield immediate returns or require significant investments.

These additional cutbacks come after Nio's previous announcement in November regarding its intentions to reduce its workforce by 10%, aiming to improve efficiency and reduce costs amidst escalating market competition.

In China, the demand for electric vehicles has decelerated, with consumers displaying a preference for more economically viable plug-in hybrids.

Shares of NIO ended the week up 2.71% after reaching a weekly high of $8.21/sh on Wednesday.

cyber monday

This week in EVs: Tesla's trouble abroad | Pro Recap
 

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Comments (7)
Mojo Snake
Mojo Snake Dec 10, 2023 7:54PM ET
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So you are saying buy Tesla. Not like bad news ever affects it's stock price. Good luck trying to take it down.
Barry Nickerson
Subbuilder Dec 10, 2023 5:45PM ET
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Tesla will end up like Ferrari with the super-cars and just cater to the rich.  The cheap Chinese cars will replace the low end Teslas.
John Whitfield
John Whitfield Dec 10, 2023 3:16PM ET
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this is seasonality and a retaliation campaign against Elons wealth represented by TSLA share price- Elon is creating a movement that bucks the elitests playbook and is keeping Gen populus informed and they arent happy. TSLA is the rebel long trade against globalists
Niels Jorgen
Niels Jorgen Dec 10, 2023 3:16PM ET
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Ahm no it is in fact a wall street company not a rebel… once perhaps it was… not anymore since it cannot even sign on to collective bargaining agreements… this is very much taking a wall street stance (and forget what americans think they know about unions etc… collective bargain socialism..).You can clearly see this by recent Elon comments and actions last year… he is trashing the brand of hope/ rebel
Niels Jorgen
Niels Jorgen Dec 10, 2023 3:16PM ET
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Its a super free market economy even more so in some ways than the us… but there has been a special way of organising and doing things… and this has in fact been highly succesfull… its not that if he continues he cant sell to these 15-20 mio with high buying power eg perfect high quality ev market but also that ge takes some weird ideological stance without actually getting into understanding the region
Niels Jorgen
Niels Jorgen Dec 10, 2023 3:16PM ET
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Niels Jorgen and i am/ was a tesla fan or atleast hoped it could make a difference but seems like the fame or wealth got to him
Wadim Sei
Wadim Sei Dec 10, 2023 3:16PM ET
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Niels Jorgen Well, what kind of nonsense is this? do you work 80 hours a week? ...Musk has not needed money for a long time
Paul Bemis
Paul Bemis Dec 10, 2023 2:38PM ET
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TSLA just sold out of the Model Y in China till the end of the year. Sales in China are booming. WTF are you talking about? Another TSLA hit piece!
Joel Hauser
Joel Hauser Dec 10, 2023 2:27PM ET
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Chinese citizens love western designed quality products or cars, so tesla will be in demand over their own cheap copycats.With regards to Scandinavia(Somali afghan refugee colonies) it's better to ignore those turds as they are insignificant in numbers in present or past.
John Kochkerian
Kochi_Allfather Dec 10, 2023 1:10PM ET
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Investing.com prices dropping must mean there's a demand problem.
John Whitfield
John Whitfield Dec 10, 2023 1:10PM ET
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not necessarily- unless you know what the margins are with ptice drop this is a baseless claim
Empire Destroyer
Empire Destroyer Dec 10, 2023 10:16AM ET
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Not great news but good for stocks
 
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