Tesla’s poor sales performance in China worries investors

Tesla’s poor performance in China has worried investors.

The electric car leader sold fewer than 26,000 cars in China in April, down 27% from March, according to figures released by the China Passenger Car Association.

However. local electric vehicle manufacturers Nio, Xpeng, and Li Auto, all reported improved domestic 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 has five Chinese regulatory agencies questioning the quality of its Shanghai-made Model 3 cars.

There were also reports of China’s military banning Tesla vehicles from entering its complexes, expressing concerns that cameras equipped on-board could be used for spying, a charge Tesla CEO Elon Musk denied.

On Tuesday reports claimed Tesla also halted plans to buy land to expand its Shanghai plant into a global export hub due to uncertainty over U.S.-China trade tensions.

The poor sales figures is expected to plunge Tesla stocks. The company was the world’s most valuable automaker in 2020 after its share price rose by 743% in the pandemic stricken year.