Shares of Tesla, Inc. (NASDAQ:TSLA) fell in premarket trading on Tuesday, signaling that they could tack onto the nearly 5% drop seen on Monday.

The weakness is despite the U.S. stock futures pointing to a modestly higher open. The immediate trigger could be the China weekly insurance registrations data, which showed that insurance registrations for Tesla electric vehicles came in at 10,800 for the week of Oct. 23-29.

Tesla could also be reacting to reports of the United Auto Workers union organizing around the company’s Fremont plant following the success the union has had with Detroit’s big three.

Future Fund’s Gary Black noted that four weeks into the fourth quarter, China-insured registrations totaled 28,400 units, down 22% from the first four weeks of the third quarter. The fund manager attributed the softness to the lack of Model-3 deliveries until Oct. 26 amid the launch of the refreshed Model 3.

GLJ Research’s Gordon Johnson said in a post on X, formerly Twitter, that the demand for the refreshed Model 3 would be muted, citing shortening lead times.

With the fourth quarter so far not showing an inflection in China, one of Tesla’s key markets, investors will likely begin discounting another lackluster quarter.

In premarket trading on Tuesday, Tesla stock fell 1.59% to $194.22, according to Benzinga Pro data.

Tesla. Photo via Shutterstock

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