Tesla (TSLA) -2.53%)) Stock has been in recovery mode recently. After being rejected for a month to start the year, shares skyrocketed over 40% last month. Much of that rebound came after CEO Elon Musk was planning to spend more time with an electric vehicle (EV) manufacturer and reduced his role in Washington, DC.
However, as many investors shift their focus to the EV business itself, stocks are sluggish today. And the numbers don’t look promising. Stocks fell nearly 5% on Monday morning and fell 3.3% as of 11:35am.
Image source: Tesla.
Tesla sales are not rebound
Currently, all eyes are from Tesla EV sales data, especially from China. Tesla offered 13% less EV in the first quarter, but stock bullish pointed to a good reason for that decline. Telsa had finished refreshing the bestselling model Y. Many investors believed that once completed it would spur sales push. China is one of the key markets investors should look at.
However, the second quarter has not started well for Tesla’s sales in the largest global EV market. Subsequent to the registered data was shown to Wall Street analysts that China’s sales plummeted about 26% in the first half of April and May. Baron’s It was reported over the weekend. This represents a sharp decline in sales in China, which was almost flat in the first quarter.
The latest data should be released soon by the Passenger Automobile Association (CPCA) in China, with investors likely to sell their shares in anticipation of worse sales results. With sales plummeting in many European markets, the Chinese market is even more important to Tesla.
If the next report from the CPCA does not show a major turnaround, Tesla shares could continue the decline that began today.
