- 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.
For further details see:
Tesla's China Scare