Tesla vehicle insurance registrations in China fell nearly 10% last week, holding the global EV giant's performance below third-quarter levels while it struggles to reach record Q4 output and the 1.8 million vehicle deliveries the company targeted for 2023. Meanwhile, Tesla raised prices slightly in China on its rear-wheel drive versions of the Model 3 and Model Y.
Tesla insurance registrations in China totaled 12,700 for the week ending Nov. 12, down 9.3% vs. 14,000 the week prior, according to data compiled by CnEVPost. These numbers represent the second full week since Tesla began delivering its revamped Model 3 in China. Currently the numbers are not broken down to show Model 3 vs. Model Y registrations.
The popular TSLA Chan account on X, formerly Twitter, also tracks Tesla China vehicle registration numbers. The account put the number for last week at 13,000, which would be a 7% decline compared to the prior week.
Six-weeks into Q4, Tesla China insurance registrations, a rough gauge for vehicle deliveries, totaled 55,500 for the quarter, down around 7% compared to the same point in the third quarter.
Tesla stock edged up 1.4% early Wednesday. TSLA surged more than 6% to 237.40 Tuesday during market action. The stock jumped 4% Monday on news India is considering cutting tariffs on EV imports at the request of Tesla.
Through the end of Q3, Tesla delivered about 1.3 million vehicles globally for the year, meaning the company needs to deliver 480,000 in Q4 to reach 1.8 million. That's 3% more than its record 466,000 deliveries in the second quarter. Tesla reiterated its 1.8 million vehicle delivery goal in its third-quarter earnings.
However, since Oct. 18, analyst projections have dropped. Wall Street consensus has Tesla vehicle deliveries in 2023 totaling 1.79 million, just below that 1.8 million target, according to FactSet. However, Wall Street is currently expecting 473,000 deliveries in Q4.
Analysts' average 2023 EPS estimate has also fallen 6% since Q3 earnings. Wall Street is predicting 2024 earnings will now undercut 2022, with analysts expecting EPS of $3.92 — down 13% vs. the $4.50 view before Q3 earnings.
Tesla Raises China Model 3 Prices (Slightly)
The EV company also late Monday increased the price of its rear-wheel drive Model 3 in China by $206. Tesla hiked the price on the rear-wheel drive Model Y by $344.
This comes after Tesla increased prices in China Wednesday on the long-range versions of its Model 3 and Model Y vehicles.
The global EV giant hiked the price on the long range Model Y by $206 and raised the Model 3 trim price by $344 Wednesday, citing higher costs. Earlier in the week, local media in China had reported that Tesla salespeople were telling customers Model Y prices were about to go up in China, saying it was a continuation of the $1,920 price increase to the Model Y Performance trim in late October.
The EV company unveiled its new Model 3 in China on Sept. 1 with official sales beginning on Oct. 19. The global EV giant started delivering the Model 3 on Oct. 26. Tesla also launched a slightly updated Model Y earlier in October.
Tesla Stock
TSLA shares sank after the company reported worse-than-expected Q3 earnings and revenue on Oct. 18. Tesla reported third-quarter earnings down 37% to 66 cents per share, the lowest in two years for Elon Musk. Meanwhile, quarterly revenue increased 9% to $23.35 billion. Tesla's auto gross profit margins, excluding regulatory credits, fell to 16.3%.
Elon Musk on the earnings call also preached caution, offering investors warnings about the upcoming Cybertruck and the broader economy. The following day, Tesla stock fell 9.3%.
However, TSLA has advanced more than 18% in November, with preliminary Cybertruck deliveries beginning Nov. 30.
Since the beginning of 2023, Tesla stock has advanced around 92%, broadly outperforming the broader S&P 500 index.
Last week, HSBC initiated coverage of Tesla stock with a reduce rating and 146 price target. Analyst Michael Tyndall wrote that Tesla vehicles may well be the main driver of revenue and profits currently, but the future for Tesla is about robots, autonomous vehicles, energy storage and supercomputers.
Tesla stock ranks sixth in the 35-stock IBD automaker industry group. The S&P 500 component has an 89 Composite Rating out of a best-possible 99. Tesla stock also has a 90 Relative Strength Rating and an 88 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get An Edge In The Stock Market With IBD Digital
Labor Unions Keep The Heat On Starbucks And Amazon
