The China Passenger Car Association mentioned earlier today that Tesla delivers 30% of all-electric cars in China. Tesla delivered 3,958 during February which according to the secretary-general of the industry group is a ”pretty good performance”.
The Chinese auto group predicts that sales of cars will drop around 8% in China during all of 2020 because of the COVID-19 Coronavirus. It seems tough, that Tesla has dealt with the problem. The China Passenger Car Association does not usually break out the sales of specific companies in their monthly briefing but they made an exception. The report does not specifically mention how many of the vehicles were actually delivered to customers and not car dealerships. But none the less, the figure came during a time when Chinese auto sales went down with around 80% due to the Coronavirus.
Unfortunately, Tesla has not released the number of sales that the company did last month. But later this month, when registration figures come out, investors will get a better sense of on the sales. According to China Automotive Information Net, the Tesla Registrations fell about 46% from December. The January registrations were 3,563 units which now has gone up.
Devastating Fall for the Stock Market
The stock market has not been doing too well amidst the unease of the Coronavirus. Today the market dropped a staggering 7.79% and the S&P 500 had its worst day in more than a decade. As the market opened earlier this morning S&P 500 dropped 7% which resulted in a circuit breaker. A circuit breaker means that all trading will come to a halt for 15 minutes. Additional breakers would trigger if the market would continue down to 13% and 20%. The circuits breakers were first introduced in 1987 during the Black Monday stock market crash. This ”break” will give time for reflection for buyers and seller.
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Tesla also dropped today with 13.57% and during the last month with 18.71%. Even though $TSLA has good down during the last month, the stock has gone up with 45.40% since the beginning of the year.
The Coronavirus has clearly had a great impact on the world and the stock market in general. This has somewhat been reflected in the stock price of $TSLA. It seems though, that Tesla are still handling the crisis relatively well. The fact that Tesla delivers 30% of electric cars in China is great during these times as the virus is preventing people to even go to the dealerships.
Even though Tesla might not be selling all the cars to consumers it is still impressive that the factory is still producing cars at a high speed. Being able to keep the production rate up even during this crisis is also just a good indicator for the future of the Chinese market. When the virus gets under control, Tesla will probably be able to deliver even more cars and really take over the market in China.