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Shares of NIO Inc (NYSE: NIO) today surged higher after reports emerged that Tesla’s Chinese EV sales had plummeted 24% in July.

According to the report, new registrations of Tesla EVs in China fell to just 11,456 vehicles based on data collected by China Passenger Cars Association (CPCA). This was a 24% decline from the 14,954 vehicles registered in June.

However, this is the second report published by the CPCA given that an earlier report had indicated that registration of Tesla vehicles had fallen 35% to 11,041 vehicles in July, as local Chinese EV manufacturers such as NIO eat into Tesla’s market share.

Furthermore, industry experts warn that July is traditionally an off-season month for vehicle sales in China, which explains the decline.

Tesla fans will be pleased to know that despite the monthly drop, the sales numbers were higher as compared to July 2019, which shows that Tesla still has a strong presence in the Chinese market.

NIO share price

Tradingview chart of NIO share price 17082020

NIO shares today rallied 3.96% higher to trade at $13.62 premarket having closed Friday’s session at $13.10.

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