Tesla China Sales Continue To Languish, New Data Shows; Will Upside Price Tweaks Aggravate Weakness?
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc.'s (NASDAQ:TSLA) sales in China continue to struggle, with insurance registrations for Tesla vehicles showing a decline. The week of November 6-12 saw 13,000 units, down from 14,000 units the previous week. Despite the launch of the Model 3 refresh, quarter-to-date insured registrations are 7% below Q3. Tesla has recently increased prices for several models in China, which could impact consumer demand amid global economic uncertainty. However, Gary Black views the price hikes as a positive signal that may alleviate investor concerns about shrinking auto gross margins. Tesla's stock rose 1.67% in premarket trading on Tuesday.
November 14, 2023 | 10:08 am
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Tesla's insurance registrations in China show a decline, indicating continued sales challenges in a key market. Recent price increases for Model Y and Model 3 variants may affect short-term demand, but could also signal margin improvements to investors.
The decline in insurance registrations suggests a potential short-term negative impact on sales volume, but the premarket stock price increase indicates investor optimism. The price hikes could either deter price-sensitive consumers or be seen as a positive move to stabilize margins, making the short-term impact on the stock price uncertain.
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