Last week marked a significant uptick in Tesla’s vehicle insurance registrations in China, reaching 16,200—the third-highest weekly total recorded so far in 2024. This figure represents a noteworthy 12% increase from the previous week’s total of 14,400. As a result, overall registration numbers have surpassed last year’s figures. With just three weeks remaining in the third quarter, Tesla’s registrations in China have surged by 25% compared to the preceding quarter, reflecting a robust 15% year-on-year increase.
2024 has proved to be a turning point for Tesla in China, with year-to-date registrations now up 0.2% compared to the same time period last year. This positive momentum is a crucial indicator of Tesla’s market positioning in one of its largest territories. Following these developments, Tesla’s stock saw a 1.7% rise in premarket trading on Tuesday, building on a 2.6% gain observed the previous day.
The European Union’s decision to adjust tariff rates on Chinese-made electric vehicles (EVs) has also played in Tesla’s favor. Reports reveal that the additional tariff on Tesla has dropped to just under 8%, while competitors are facing higher tariffs. This strategic move is set to enhance Tesla’s competitiveness within the European market.
Adding to the positive sentiment, Deutsche Bank analyst Ed Yu recently resumed coverage of Tesla, giving the stock a buy rating and setting a price target of $295—a striking 36% upside from its current trading levels. Yu’s analysis repositioned Tesla not merely as an automotive manufacturer, but rather as a transformative technology platform reshaping various industries. He acknowledges existing challenges such as delivery growth and slim margins but posits these issues as temporary setbacks.
In August, Tesla’s streamlined operations led to 63,456 vehicles being sold domestically in China and another 23,241 units being exported. Notably, these domestic sales reflect a 37% increase from 46,227 in July, despite a slight decline from the previous August’s total of 64,694.
Tesla’s continued sales performance is buoyed by favorable financing options, including zero-interest loans to consumers and government incentives for EV purchases, which remain in effect until the end of September. Analysts predict that Tesla will deliver about 458,000 vehicles in the third quarter—an increase of over 5% from the same period last year, positioning the deliveries as one of the strongest quarterly totals in the company’s history.
Despite a recent dip in stock performance—down by 1.6% last week—TSLA has been maneuvering around its 50-day moving average following positive news from China and announcements regarding its full self-driving capabilities. The stock has experienced around a 13% decline year-to-date, albeit a strong recovery of 60% was noted from a low in late April.
Currently, Tesla shares rank third within the 35-member IBD Auto Manufacturers industry group, reflecting a composite rating of 63 out of a potential 99, a relative strength rating of 69, and an EPS rating of 57. For those eyeing opportunities within the EV market or assessing the stock’s potential, staying informed of Tesla’s developments is essential, especially as the brand continues to demonstrate resilience and adaptability in a competitive landscape.
The narrative surrounding Tesla’s advancements underscores the importance of remaining agile in the ever-evolving automobile sector—signifying a pivotal moment as the company braces for the future of electric transportation in a rapidly changing market.