Tesla\`s EV sale stumbles in April

Tech giant Tesla's recent run of bad publicity in China is apparently hurting its sales there_ raising investor concerns.

The electric car maker company sold fewer than 26_000 cars in China in April_ down 27% from the previous month_ according to figures released by the China Passenger Car Association. The drop came as Chinese EV (Electric Vehicle) manufacturers such as Nio (NIO)_ Xpeng and Li Auto_ all reported improved domestic EV sales.

Tesla was the target of a protest at China's largest auto show in Shanghai last month by Tesla owners who complained about problems with their cars. The company also has five Chinese regulatory agencies questioning the quality of its Shanghai-made Model 3 cars. And there were reports that China's military had banned Tesla vehicles from entering its complexes_ expressing concerns that cameras equipped onboard could be used for spying_ a charge Tesla CEO Elon Musk denied.

"It was expected that its April sales would be down sequentially_ but not to this extent_" said Dan Ives_ a tech analysts at Wedbush Securities. "China is a lynchpin to the Telsa bull story. The sales numbers show that all the issues in April had an impact."

Also hurting share prices Tuesday is a story from Reuters that Tesla has halted plans to buy land to expand its Shanghai plant into a global export hub due to uncertainty over US-China trade tensions.

Tesla did not respond to a request for comment on either its April sales in China or its Shanghai plant plans. The company reports its global sales quarterly_ not in particular markets or for particular months. Reuters reported that Tesla told it that the Shanghai factory is "developing as planned."

The news of Chinese sales and the Reuters report helped send Tesla shares down 3% in early trading_ after being down even more in pre-market trading.

A spectacular 743% share price gain in 2020 lifted Tesla to one of the most valuable US companies of any kind and by far the world's most valuable automaker_ worth as much as the six largest automakers combined.

But after continuing that run in the first few weeks of 2021_ shares topped out in late January after the company reported slightly disappointing fourth quarter earnings. The slide has taken Tesla shares down 29% from their peak_ even before Tuesday's slide_ sending the stock into bear market territory.