Tesla vehicle insurance registrations in China surged nearly 19% sequentially last week, marking its third highest weekly total ever, as the global EV giant looks to beat its prior best-ever quarterly deliveries and hit record-setting 2023 targets. TSLA stock edged up Tuesday, moving above an early entry.
Tesla insurance registrations in China totaled 18,300, up 18.8% from 15,400 the prior week, according to data reported by CnEVPost. The numbers represent the seventh full week since Tesla's revamped Model 3 hit the market in China. Currently the numbers are not broken down to show Model 3 vs. Model Y registrations.
Tesla aims to deliver 1.8 million vehicles in 2023, with China a bright spot in Q4. So far in Q4 Tesla China insurance registrations, a rough gauge for vehicle deliveries, total 138,200 for the quarter, up more 15% compared with the same point in Q3. The number of China registrations through Q4 is also 10% higher than the same point in Q2 when Tesla delivered a record 156,676 vehicles in China.
This surge in weekly registrations comes as Tesla China recently announced that it has sold out of the Model Y for 2023, apparently referring to the standard range trim of the vehicle. The Model Y is the most popular vehicle in the Tesla lineup.
TSLA has also upped its EV price war once more in China. The U.S.-based EV company raised prices on Model Y trims in China for five straight weeks while also beginning to offer a $1,127 insurance subsidy for base-trim Model 3 and Model Y vehicles in inventory through year-end, local media has reported. Tesla also is offering low-rate loans to spur demand.
In response, top competitor BYD stepped up discounts on a range of models, as the China EV and battery giant aims to hit a sales target of 3 million EVs in 2023. Many other Chinese EV makers have announced significant discounts or price cuts.
Tesla stock gained 2% t0 256.94 Tuesday market action. On Monday, TSLA edged down 0.6% to 252.08. In December, Tesla stock has angled 7% higher.
Tesla Targets Record Q4
Tesla sold 82,432 China-made vehicles in November, up 14.3% from 72,115 in October, breaking two straight months of sequential declines in sales, according to data released last week by the China Passenger Car Association (CPCA). However, Tesla's November sales total fell 17.8% from 100,291 in November 2022. This data includes exports.
Before Tesla delivered 12 Cybertrucks on Nov. 30, the EV company unveiled its new Model 3 in China on Sept. 1 with official sales beginning on Oct. 19. Tesla started delivering the "Highland" Model 3 on Oct. 26 in China, with European deliveries also underway. The global EV giant also launched a slightly updated Model Y in China earlier in October.
Through the end of Q3, Tesla delivered about 1.324 million vehicles globally for the year, meaning the company needs to deliver roughly 476,000 in Q4 to reach 1.8 million. That's 2% more than its record 466,140 deliveries in the second quarter and a rebound from Q3's 435,059. Tesla reiterated its 1.8 million vehicle delivery goal in its third-quarter earnings.
However, since Oct. 18, analyst projections have come down slightly. Wall Street consensus has Tesla vehicle deliveries in 2023 totaling 1.797 million, just below that 1.8 million target, according to FactSet.
Meanwhile, Wall Street is currently expecting 473,000 deliveries in Q4. Tesla is expected to report fourth-quarter deliveries in early January.
Germany Abruptly Ended EV Subsidies. This Is Tesla's Response.
Tesla Stock Performance
TSLA shares sank after the company reported worse-than-expected Q3 earnings and revenue on Oct. 18. However, Tesla stock is building the right side of a double-bottom base giving it a 278.98 buy point, according to MarketSmith analysis.
Tesla stock rose 4% last week, slightly topping the Nov. 29 high of 252.75 as an early entry. Shares advanced above that level Tuesday.
Since the beginning of 2023, Tesla stock has gained more than 100%, easily outperforming the broader S&P 500 index.
Tesla stock ranks fourth in the 35 member IBD Automaker industry group. The S&P 500 component has an 81 Composite Rating out of a best-possible 99. Tesla stock also has an 83 Relative Strength Rating and an 88 EPS Rating.
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