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.
Interested in investing after today’s move?
XTB gives investors access to thousands of UK and international stocks,
including fractional shares from just £1.
Explore stocks with XTB →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to invest in the stocks making the news?
Go from following the market to investing in it, with access to thousands
of stocks across major UK and international markets.
See available stocks →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Own the stocks you’re reading about
Invest in real shares across the UK, US and other major global markets
through XTB, all from one investment account.
Explore XTB shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
You don’t need to buy a whole share
Fractional shares let you invest from just £1, giving you more control
over how much you put into individual companies.
Explore fractional shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to see how XTB works first?
Explore the platform with an XTB demo account before deciding whether
you want to invest with real money.
Try the XTB demo →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
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
NIO shares today rallied 3.96% higher to trade at $13.62 premarket having closed Friday’s session at $13.10.
