LI - Tesla's China Scare

• Tesla saw a 27% m/m decline in deliveries for April with a majority of the reported figure exported, and a report last week pointed to a 50% decline for May.
• A recent report from Reuters disproved the prior report, showing deliveries rising 29% m/m, and up 88% excluding exports.
• Domestic players including NIO, XPeng, BYD, and SAIC-GM-Wuling have seen solid growth while Tesla's numbers declined.
• China is ultra-important for Tesla, accounting for ~37.5% of Q1's deliveries and 33.8% of automotive revenues, with a projected segment valuation at $175 billion.
• Delivery declines, mounting negative press and increased scrutiny from Beijing threaten the segment's valuation, and open up 5-8% downside possibility.

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