Quick Note: China Model 3 Sales in August Much Worse Than I thought
Yikes. More data coming out since my report last night show MIC Model 3 sales crashed to lowest since October 2019
Update to my report Tesla's China Sales and Market Share Continued to Shrink In August, published last night.
Additional August monthly China sales data is out, and it’s not good.
MIC Model 3 sales crashed by 89% y/y to 1,309—lowest since October 2019.
MIC Model Y recovered to 11,576; still down vs June & May
MIC Models 3+Y for July-August down 36% y/y vs the same period in Q2 & down 37% vs same in Q1
No word yet on Models 3/Y breakdown on exports, which were a record 31,379 from excess inventory, some 2.4x more cars than it was able to sell locally. But I suspect poor demand trends in July meant Tesla sent most of its MIC Model 3s to Europe where less than 8,000 were sold.
Recall I also had expected Tesla’s cheaper new RWD Standard Range version of MIC Model Y will hurt MIC Model 3 sales, as has happened in all markets with all its legacy models (see Tesla China Sales Deflated in July).
It’s the same pattern I’ve been tracking for years which bases my long observed concern that Tesla’s aging models have tended to fade almost immediately when faced when its new models. And its new models struggled to sustain sales after initial new launch and/or new market expansion even before the first anniversary of said event (you can review an example of that discussion in Tesla: Don’t Drive Angry).
Stay tuned.
Leon Russell - Tight Rope
Contact Us:
Disclaimer
This publication is prepared by Bond Angle LLC and is distributed solely to authorized recipients and clients of Bond Angle for their general use. In addition:
I/We have no position(s)Â in any of the securities referenced in this publication.
Views expressed in this publication accurately reflects my/our personal opinion(s) about the referenced securities and issuers and/or other subject matter as appropriate.
This publication does not contain and is not based on any non-public, material information.
To the best of my/our knowledge, the views expressed in this publication comply with applicable law in the country from which it is posted.
I/We have not been commissioned to write this publication or hold any specific opinion on the securities referenced therein.
Bond Angle does not do business with companies covered in its
publications, and nothing in this publication should be construed as a solicitation to buy or sell any security or product.Bond Angle accepts no liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this publication and/or further communication in relation to this document.