Tesla’s shares are down 1.8% in the premarket trading session on Monday as the EV maker saw its China-made car deliveries drop by 10.9% in September. Disney’s shares have been gaining after reports revealed that Nelson Peltz’s Trian Fund Management significantly raised the stake in the company and is seeking more control over the firm again.
Tesla Sold 11% Fewer China-Made EVs in September
Shares of Tesla edged lower in premarket trading on Monday after new data showed a notable volume drop in the company’s China-made EVs. In particular, Tesla sold 74,072 China-made cars in September, marking a year-over-year drop of 10.9%.
In addition, the company’s Model 3 and Model Y vehicle sales fell 12% from a month ago.
The data underscores the intensifying competition in China, the world’s second-biggest auto market. Meanwhile, Tesla’s biggest rival in China, BYD, saw passenger deliveries increase by 42.8% to 286,903 in September.
Tesla imposed a series of price cuts in both the US and China this year to improve consumer sentiment and spur demand; the latest discounts were announced last week when the auto giant reduced prices of its Model 3 and Model Y versions to revive US demand after missing Q3 delivery estimates.
Despite recent headwinds, Tesla nearly doubled its China EV market share from July to August. Last month, the company revealed a restyled Model 3 in China priced at 259,900 ($35,652) yuan. The new model, 12% more expensive than the previous, will become available for delivery in Q4.
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Disney Up in Premarket as Nelson Peltz Raises Stake in the Company
Meanwhile, Disney’s shares rose in premarket after Trian Fund Management raised its stake in the media and entertainment conglomerate. Led by activist investor Nelson Peltz, Trian is also expected to request multiple board seats at Disney, including one for Peltz himself, according to the Wall Street Journal.
The stock climbed 1.1% in the market pre-open.
With the move, Trian became one of the biggest Disney shareholders, with a stake of more than 30 million shares worth over $2.5 billion. This represents a significant increase in the 6.4 million shares Trian held at the end of Q2.
If Disney rejects Trian’s requests, the asset management firm could nominate directors who would be voted on at Disney’s next annual meeting in 2024 spring. The window for stakeholder nomination will take place between December 5 and January 4, Disney’s proxy materials showed.
Do you think Tesla’s declining EV sales in China are a temporary headwind or a sign of declining market share? Let us know in the comments below.
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