The real shocker was the information about several problems Tesla faced.

Tesla shares fell by more than 5%. Holders of securities of the American electric car maker faced new threats that could affect the EV-car giant’s leading position around the world.

On Thursday morning, Tesla announced a recall of several batches of its electric cars:

  • about 5,500 Model 3 and Model Y units because there was a need to replace the front passenger seat shoulder belt fasteners with more secure fasteners;
  • about 2,200 Model Y SUVs because of similar issues that could affect the safety of rear-seat passengers.

It is noteworthy that this week there was already information about the recall of electric cars Tesla. Then the question was about brake calipers, which can weaken and lead to the loss of pressure in tires of about 6000 electric cars Model 3 and Model Y.

The much greater danger for the brainchild of Elon Musk represents information about the decline in the number of orders for the purchase of electric cars, issued in May 2021 in China. According to some reports, the total number of orders from China amounted to less than 10 thousand units of vehicles.

When compared to orders in April 2021 (more than 18,000 units) and March 2021 (about 21,000 electric vehicles), there is reason to wonder if Tesla is maintaining its competitive advantage overseas.

In China, Tesla faces significant competition from Chinese manufacturers such as XPeng (NYSE: XPEV) and NIO (NYSE: NIO). Having built a giant factory complex in Shanghai, Tesla now expects demand for its electric cars to grow in China.

If this prediction does not materialize, it could have huge implications for Tesla’s growth trajectory not only in the PRC but in the entire Asia-Pacific region.

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