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Reported Depletion In Tesla’s October Sales by 70% Lead to Stock Fall

According to the sales report of Tesla, its automobile sales for the month of October in China rushed down by 70% as compared to the October previous year’s sales, which led to the decrease in its share value during the premarket period on Tuesday.

Reuters got to know about the sales records of Tesla from an authorized person that belongs to China’s passenger car association who stated that in October month, Tesla was able to sell only 211 cars in China.

In response to this, Tesla spokesperson commented to CNBC that October sales record is completely wrong, as the company never reveal regional as well as monthly sales figures.

At the beginning of market trading on Tuesday, there was a sudden drop in share value of Tesla by 1.4%.

Tesla brought back all of its vehicles that are exported to China for sale, which emphasizes the gloomy effect of the U.S.-China trade war over the U.S. automaker’s business led by Elon Musk.

At the time of broadcasting its production data for the year’s third quarter, Tesla said that despite facing problems due to the ongoing trade war between two nations, the company managed to considerably increase the deliveries of its Model X and Model S.

Tesla also identified that similar to the U.S., China has introduced relatively high import tariff of 40% on Tesla vehicles, as compared to other vehicles import with 15% tariffs. Tesla said that due to import tariffs by China, the cost of Tesla vehicles in China reaches 50% to 60% above as compared to the cost of the exact car manufactured by a Chinese automaker.

Regardless the recent fall in share value, Tesla has traded better in the current year as compared to the overall U.S. equity market. Tesla’s shares have spurred by more than 11% since January of this year.