Tesla Inc.’s (NASDAQ:TSLA) insurance registrations in China reached 18,600 units for the week ending Dec. 1, indicating robust demand in one of the electric vehicle maker’s key markets, according to data shared by industry analysts.
What Happened: The Future Fund LLC Managing Partner Gary Black said that Tesla China’s fourth quarter performance is showing significant growth, with registrations up 14.2% year-over-year and 5.8% quarter-over-quarter. The current trajectory suggests this could be Tesla China’s strongest quarter to date.
Recent weekly registration data has shown consistent strength, with numbers holding steady above 16,700 units throughout November. The latest figure of 18,600 units represents a notable improvement from previous weeks’ registrations of 17,300, 17,100, and 16,700 units.
Historical data reveals substantial growth in Tesla’s Chinese market presence. Insurance registrations jumped from 440,793 units in 2022 to 610,074 units in 2023, demonstrating the company’s expanding foothold in the world’s largest automotive market. The 2024 projections indicate continued growth, with weekly registrations consistently outpacing previous years.
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Why It Matters: This positive momentum comes as Tesla faces challenges in other areas. The company recently confirmed it has no immediate plans to introduce its newly launched Cybertruck in China, according to Chinese media outlet Jiemian. CEO Elon Musk previously cited potential regulatory hurdles for the stainless steel vehicle in the Chinese market.
Tesla’s Shanghai gigafactory, which produces the company’s mass-market Model 3 and Model Y vehicles, has been crucial to its success in China. Unlike the premium Model S and Model X, which are imported, these locally manufactured vehicles have helped Tesla capture a significant share of China’s growing electric vehicle market.
The strong insurance registration numbers suggest Tesla continues to maintain robust demand in China despite increasing competition from local manufacturers and global economic uncertainties.
Price Action: Tesla stock closed at $357.09 on Monday, up 3.46%, for the day. In after-hours trading, the stock dipped 1.23%. Year to date, Tesla’s stock has surged 43.74%, according to data from Benzinga Pro.
Tesla has a consensus price target of $246.16 based on 34 analysts. The highest target is $411, and the lowest is $24.86. Recent ratings from Roth MKM, Stifel, and UBS suggest an average target of $339, implying a 5% downside, according to data from Benzinga Pro.
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Image via Tesla
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
