Tesla production in Shanghai during April plunged 98% from March, according to the The China Passenger Car Association, as the EV maker grappled with China's severe lockdown due to rising Covid infection rates. On Tuesday, Reuters also reported that Tesla has all but stopped production at the plant due to supply snags. Tesla stock sank Wednesday, after rebounding Tuesday despite the negative news, as investors had already factored in the challenges.
Despite the limited supply, Tesla reportedly restarted shipments to Europe in recent days. A May 11 Reuters report citing local media says Tesla has shipped 4,676 vehicles to Slovenia.
With Shanghai in its sixth week of a shutdown, the report said Tesla planned to make fewer than 200 vehicles on Tuesday, far below the 1,200 units per day it had been able to produce in recent weeks.
Tesla reopened its Shanghai factory on April 19 after being closed for 22 days, with workers eating, sleeping and working at the plant in a so-called closed-loop system to limit exposure to Covid.
The CPCA said Tesla produced 10,757 vehicles in April, selling 1,512 of them. That's a far cry from the 65,814 cars sold in March. Tesla did not export any made-in-China Model 3 and Model Y cars in April.
Tesla's typically exports the bulk of its China-produced cars mainly to Europe in the first two months of the quarter, and has its strongest numbers in the third month.
The company officially opened a plant just outside Berlin on March 22, which will eventually supply much of the European market.
It's unlikely Tesla's second-quarter output will manage to build on its record-setting Q1 deliveries of 310,000 vehicles. FactSet now estimates Tesla will deliver 299,000 vehicles in the quarter ending in June, with revisions likely to come again as supply shortages continue to hamper production.
Overall passenger car sales in China dropped 36% year over year in April, while production fell 47%. China is a key market for automakers as it is the world's largest. Warren Buffett-backed BYD was the top seller in the overall market for April. It sold 105,000 units in April, a 138% year-over-year surge.
Meanwhile, sales of battery-electric vehicles and plug-in hybrids, which receive government incentives, rose more than 50%.
The CPCA reported sales of China-made new energy vehicles rose 52.6% year over year in April to 293,000.
Tesla Stock
Tesla tumbled 8.25% to 734 on the stock market today, the lowest close since last September.
Shares are trading well below their 50-day and 200-day lines, amid a market downturn. Tesla's relative strength line also took a dive. Its RS Rating is 79 out of a best-possible 99, while its EPS Rating in 78.
Among other U.S.-based EV makers Lucid dropped 13.1%. Rivian plunged 9.6%, following its harrowing 21% drop on Monday. Rivian rose modestly overnight despite weak Q1 results Wednesday night.
Legacy automakers with a growing EV presence General Motors fell 3.7% and Ford lost 3.9%.
Tesla's China-based rivals Nio fell 3.8% Tuesday, while Li Auto rose 2.3%, Xpeng fell 2.2% and BYD jumped 4.1%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
