Tesla (TSLA) domestic sales in China hit 2024 year highs last month, marking a 37% increase compared to July, according to data released Monday by the China Passenger Car Association. Meanwhile Chief Executive Elon Musk took to social media to defend Tesla’s market position in China. TSLA shares angled higher early Monday.
Tesla delivered 63,456 vehicles domestically in China while exporting 23,241 China-made vehicles to foreign markets during August. The U.S. EV giant’s domestic unit sales grew more than 37% vs. the 46,227 sales in July, but are still down around 2% compared to the 64,694 total from August 2023.
Last week, the China Passenger Car Association released preliminary data showing Tesla sold 86,697 China-made EVs in August, including exports. That marked a 17% increase vs. July and a 3% jump vs. a year earlier, as China’s competitive EV market appears to be rebounding.
Tesla stock advanced 2.3% to 215.54 during market action on Monday after cratering 8.5% to 210.73 on Friday, dropping back below its 50-day moving average.
Tesla China So Far In 2024
Through the first eight months of 2024, Tesla China has sold 587,437 vehicles, down 6% compared to the same time frame in 2023. However, in the January-August period, Tesla has sold 388,000 vehicles in China, which is down less than 1% from those eight months in 2023.
In August, Tesla’s EV market share in China was about 8.3%.
Tesla China is benefiting from continued five-year, zero-interest loans to buyers, as well as increased government subsidies for EVs. These are currently running through the end of September.
Analyst consensus has Tesla Q3 deliveries totaling 458,000 units, up more than 5% vs. Q3 2023, according to FactSet. This total would represent the third best quarterly delivery total ever for Tesla, behind Q2 2023’s 466,000 and Q4 2023’s record setting 485,000 deliveries. Analysts project Tesla matching its record total in the fourth quarter, meaning unit sales would be flat compared to a year ago.
On Sunday, Musk responded to a post on X about a Financial Times article claiming Tesla is losing customers in China amid growing EV competition.
“Believing the news is silly,” Musk wrote. “Our Shanghai factory is running at max capacity.” At the end of 2023, Tesla’s Shanghai plant had an annual vehicle capacity of around 950,000.
Tesla Stock Performance
Last week, Tesla stock fell 1.6% to 210.73, erasing the prior two-week gain. On Thursday, shares popped above their 50-day line and cleared a 238.22 short-term high, buoyed by robust China sales and the EV giant’s full self-driving, known as FSD, rollout plans. That offered an aggressive entry for TSLA stock.
However, on Friday TSLA plunged 8.45%, dropping below the 50-day line. Tesla stock is attempting to start up the right side of a possible cup-base.
