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Tesla sales in CHINA on the DECLINE

Tesla sales in CHINA on the DECLINE

– Now, the story doesn’t
really end there though. Partly because Tesla,
recently in a report out, that the sales in China
plunged 70% in October. Now, this is weird
because this was a report from the China Passenger Car Association. And they said that Tesla
only sold 211 this October, which was a drop of 70% compared
to October of last year. Now this could also
explain part of the reason why Tesla was slashing their prices. And they had said previously that was due to the tariffs and the
trade war and all that. And then Tesla later actually refuted this and saying that this report is not true, these numbers are not right. But they also didn’t
provide their own numbers, so we’re still kind of
in the dark about that. You might be wondering why. Well, Tesla doesn’t actually
report sales by country or any of that kind of stuff. And they don’t report a monthly either. So unless Tesla came out
and gave us this number, this data, which they’ve
never done before, it would be something
that we’re just kind of left to try to figure out
with the quarterly statements, where they do report those. However, they still don’t list by country. So all of this led to Tesla shares dipping 1.7% after this news. Whether those two things
are directly related, who knows, but you know, often those are kind of the things that happen. Now there has been a
development on this story since I last pulled the research together. And that is that at the
G20 Summit in Argentina, Trump and Xi Jinping, I think is his name, the Chinese president, met
and they talked about it and China has agreed to reduce
and remove tariffs on cars coming in to China from the U.S. So, that being said, Tesla’s
stock has been trading up. And this is very kind of new. So, we’re gonna have these waves of, hey somebody’s gonna be doing this, it’s gonna affect Tesla. And then, oh the stock
takes a little bit of a hit. Honestly, if you’ve been
following Tesla for a long time, 1.7% isn’t actually that big of a drop. I mean, these things can fluctuate wildly. But here you have, as of
right now, of this recording, China agreeing that they’re
gonna reduce or restructure those tariffs, I heard a 90-day plan is what they have to come
up with in order to have a verifiable change in
some of the trade policies, et cetera, et cetera. And so, I think that’s exciting. You know, Tesla still has the plant they’re building in China. So I’m guessing once that’s up and running is when you’ll really start
to see sales take off. Remember, the S and X are the only ones that are currently being sold in China, and those are, even by U.S.
standards, a premium price. So over there with the added tariffs, it’s gonna be even more expensive. So right now, this really is
kind of the ultra wealthy. And of course, there’s
a lot of people in China that have the money for
that, not discrediting that. But as you see the Model 3 come out is when I think you’re
gonna see the volume just really sky rocket in China for Tesla. And China is the most important
EV market in the world, which is interesting. The government is pushing
harder on electric vehicles and renewables than
anyone else in the world, and they’re giving huge tax breaks on it. And the thing is that they already have a ton of local companies
making these cars, BYD specifically. So it’s one of those things where Tesla hopefully isn’t too late
to the game in China. And hopefully these things,
about the tariffs changing and all that kind of stuff, can alleviate some of that pressure and
hopefully keep the momentum going until they get that
factory up and running, which I think was about two
to three years from now. So, curious what you guys think. Is it good, is it bad? There’s lots of stuff, really kind of fluid situation right now. So let me know in the comments, especially if you’re in
China or have any thoughts or feedback on that. What do you see going on around you? Do you ever see a Tesla? I know if you go to
Norway, they’re everywhere. If you come where I’m at
in Southern California, they are literally everywhere. So I’d be really curious to hear from you if you have any first
hand experience there, so let me know about that.

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27 thoughts on “Tesla sales in CHINA on the DECLINE

  1. Without tariffs USA can not win , because in China wages are lower, and because of this is always cheaper to produce there, also Asian cultures tend to be not so selfish as waster, for example, import cars in Japan are only bought by the Yakuza, average person would not buy American brad even if it would be cheaper and better than Japanese, so Americans would loose everything without tariffs, also, China always had tariffs

  2. China is good at reverse engineering, I think they already have Tesla reverse engineered & stamped their own brand on it then selling at a much cheaper price

  3. Even if China buy less cars than expected it doesn't really matter for Tesla, there are so many other regions that will buy their cars in the upcoming years and they have their fingers in more than just one pie as well. The energy sector could grow even bigger than than the car one even, so to sell your stocks whenever you hear a dog fart is telling us something about how many fish there are that invests in stocks; which is good for professional investors of course.

  4. I live in Holland and i see here and there a tesla. And the funny thing is every time i see a tesla. i say TESLA hahaha My familly hopes i will get a second hand (That is what i can effort right now) Tesla so i stop calling when i see one. But about China. i think Tesla will have a good share of cars over there. It is a smart move to build a giga factory in China and the demand will grow. And Tesla will have a great future. And will be in my opinion the best EV company in the world. I still remember the first time i saw the video of the model S when it was introduced to the world. From that point i wanted one and will own one one day.

  5. Ben, Tesla Giga 3 is being built in China with production starting in China in 2019. Sales SHOULD drop right now as consumers in China are going to be waiting for a cheaper tesla assembled right there and sold with no tariffs.

  6. Model 3 prices were just released for Europe: was disappointed, a car that rivals the 3 Series gets a price tag of a 5 Series (€58.000) still not the car for the masses Tesla has been promoting for a long time

  7. Tesla being stuck with a high import tax, sales declining was bound to happen. Anyone who thinks different is just wrong. It was just a matter of time. You get stuck with a high import tax into any country the same thing would happen.

  8. The word is out that Tesla is building the Giga 3 factory and therefore, Chinese consumers are holding out for Tesla's domestically (To China) built cars that will be available for a lot less money. Makes sense.

  9. I live in china. Very seldom do I see a tesla.

    But there are so many electronic vehicles out here, BYD mostly. Their cars a beautiful. Some of the city busses are also electric.

    Why don't you do a video on BYD.

  10. I think there is enough demand for Model three outside of China. But you would still want to be selling there creating demand for when the Giga Factory 3 starts production.

  11. i guess no american has heard about the social credit score policy in China. Since two months ago, if any Chinese buy anything aemerican will get a 3 point deduction for each item they purchase regardless of price. With a total deduction of 10 points will almost guarantee you cant get a loan from any bank…Thats why China doesnt mind lifting all tariffs on US goods, nobody is going to buy it. Those who are still buying are simply not aware of the new system for now.

  12. I traveled through China for 2 months over the summer this year, on the whole I didn't see too many. Although Shanghai is a different story, with Tesla's everywhere, expecially the Model X

  13. Ben asks question to audience in China . . . then realizes that YouTube is banned in China.
    Replies from 'China' now seen suspicious . . 🙃

  14. Oh no Tesla is in trouble! They only have 2 years worth of preorders and are just starting in Europe. How will they survive?

  15. Teslanomics with Ben Sullins
    Sure, America started a trade war with China, and is hoping Chinese are buying American made cars. It totally makes sense, dude!

  16. I just came back from Shanghai and saw only 1 Tesla Model X (Brown in color) in 3 days, but Hong Kong has quite many nos of Telsa running around.

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