Elon Musk’s fortune and Tesla shares both fell due to a sharp drop in the popularity of the company’s electric vehicles in China
According to several sources at once, the volume of orders for Tesla electric vehicles in China fell to 9,800 cars in May, while more than 18,000 vehicles were ordered in April.
After that, the value of Tesla shares in China fell by 5.3%, and the fortune of the founders and the leader of the company Elon Musk (Elon Musk) fell by almost 7 billion dollars.
Tesla has faced a number of challenges in China lately. In particular, customer complaints about a brake pedal have led the Chinese media to accuse Tesla of arrogance, price hikes, customer dissatisfaction with product quality, and so on. In addition, Tesla faces increasing competition from local Chinese manufacturers.
On May 11, Tesla gave up expanding its Shanghai plant to become a global export hub amid uncertainties in US-China relations. This plant allows the production of about half a million electric vehicles per year for the market of China and other countries in Asia and Europe.
Over the year, Tesla shares in China fell about 15%, and compared to the high on January 29, they are down more than 35%.
Elon Musk yesterday announced the cancellation of the fastest car Tesla Model S Plaid Plus.