BEIJING, (Reuters) – Tesla’s China-made electric vehicle sales rose 37.8% in July from a year earlier, marking the ninth straight month of growth as the U.S. automaker reports a mixed performance across its markets.
Sales of Model 3 and Model Y vehicles from its Shanghai plant, including exports to Europe and other markets, totalled 93,579 units last month, up 5.0% from June, data from the China Passenger Car Association showed on Tuesday.
Tesla posted mixed July registration results across Europe even with the broader continental EV market staging a rebound, with strong gains in France and Denmark outweighed by sharp declines in Norway and Sweden.
Competition from Chinese EV makers continues to mount, with BYD, Tesla’s biggest rival, posting higher global sales for a third straight month in July, helped by robust exports, particularly to Europe.
While CEO Elon Musk dismissed as “fake news” a report that the company was weighing a spin-off or sale of its China business ahead of a potential merger with firm SpaceX, the speculation underscores investor concerns over Tesla’s exposure to the country, where about 95% of its components are sourced locally.
Steve Greenfield, founder of U.S.-based automotive venture capital firm Automotive Ventures, warned that even speculation about a China separation could start hurting Tesla.
“Now the genie is out of the bottle…No matter how this plays out, there’ll be a negative effect on Tesla’s sales in China.,” he said.
Reporting by Qiaoyi Li, Zhang Yan, Shi Bu and Ju-min Park; Editing by Kirsten Donovan
