Tesla Inc’s third-quarter revenue dropped 39% in the United States, its first drop in over two years, but sales in China and other places surged, the electric automaker’s break down of sales by geography revealed on Tuesday.
U.S. sales, which account for the biggest share of the company’s total earnings, dropped to $3.13 billion from $5.13 billion a year previously.
Sales in China increased 64% to $669 million and its other segment, that covers the rest of the world, increased by more than a billion dollars to $1.83 billion, a regulatory filing revealed.
“Musk & Co. are laser-focused on Europe and China for growth, while domestically, core demand is fading relative to other places,” Wedbush analyst Dan Ives stated, adding that U.S. growth will continue to be more challenging going forward.
In its earnings report previously this month, Tesla reported an almost 8% drop in total revenue to $6.30 billion, missing experts’ average estimate of $6.33 billion, according to IBES data from Refinitiv. It did not break down sales by regions in the report.
Nonetheless the company surprised investors with a quarterly profit, making good on Chief Executive Officer Elon Musk’s promise, as it provided a record 97,000 cars.
The company has stated it prepares to deliver 360,000 to 400,000 vehicles for all of this year, and that it was “highly confident in exceeding 360,000 deliveries this year.”
The fall in sales in its domestic market in the recent reported quarter compares with a 55% rise in the second quarter ended June.
Tesla did not replied to a Reuters request for comment on the reason for the drop in the U.S. market.