Tesla’s growth ambitions in China have been popped, as shares of the automaker dropped by 14 percent on Thursday.
The plummet is blamed on the coronavirus outbreak and the impact that it could have on the company’s operations in the People’s Republic, reports Reuters.
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Quoting information from LMCAutomotive, the news agency states that the Palo Alto-based car maker sold just 3,563 vehicles in China last month, almost 50 percent less than the 6,613 registrations recorded in December.
Nonetheless, Tesla’s sales are known to fluctuate and to be bigger in the final month of a quarter than at the beginning. For example, in October 2019, they registered only 763 vehicles, and in January last year, they shipped 853 cars to the Asian country.
China, which is the biggest individual car market globally, continues to suffer and take hit after hit. The COVID-19 outbreak couldn’t have come at a worst time, as sales have been dropping for 19 consecutive months. Last month alone, the economy took an 18 percent hit compared to January 2019, as less than 2 million new vehicles were sold.
In addition to the car industry as a whole, the coronavirus has left a huge mark on the traditional auto shows. The 2020th edition of the Beijing Auto Show never opened its gates, and just a few hours ago, the 2020 Geneva Motor Show organizers have put an end to rumors, announcing that the event will be cancelled, after the local authorities decided to temporarily ban all gatherings that involve 1,000+ people.
