Tesla Chief Executive Elon Musk arrived in Beijing Tuesday, meeting with China's foreign minister, marking his first visit to China since 2020. Meanwhile, Tesla stock ramped up Tuesday following a big advance last week.
Musk met China's foreign minister Qin Gang in Beijing on Tuesday, according to a statement from the Chinese ministry. Musk reportedly told Qin that Tesla is willing to expand business operations in China. The Chinese foreign ministry told the Tesla CEO China is "committed to creating a better market-oriented, rule-of-law-based and internationalized business environment," according to the statement.
Tesla stock advanced 4% to 200.85 Tuesday during market trade, signaling a move above key levels. On Friday, TSLA jumped 4.7% to 193.17.
Musk's Tuesday visit to Beijing was his first visit to China since early 2020, before the beginning of the Covid pandemic. The trip comes as EV competition in China has exploded with uncertainty around Tesla demand. Tesla has not given any guidance update on plans to increase output by 450,000 vehicles a year at its Shanghai plant. However, April Tesla executives said there are plans to build a Megapack factory in Shanghai to produce energy storage products.
Tesla Shanghai has slashed Model 3 production recently, according to various reports. That could be in preparation for a revamped Model 3.
Meanwhile, Tesla Canada is discounting Model 3 inventory, just weeks after Shanghai began exporting there, replacing U.S. exports.
Tesla sold 12,800 units in China last week, up from 10,200 the week before, according to CnEVpost, citing various sources. In the first two weeks of May, Tesla deliveries were 5,928 and 9,990, respectively. The uptick in registrations could reflect stronger demand or more local supply with Shanghai's Q2 exports largely over. For the month, Tesla has sold 38,918 China-made vehicles.
In 2022, Tesla Shanghai produced 33,544 vehicles in May, with 22,340 of those vehicles being exported.
Tesla Stock
Tesla stock jumped 7.2% to 193.17 last week, riding Friday's 4.7% pop in heavy volume. TSLA has formed a cup base with a 207.89 buy point. The pattern could also be read as a double-bottom base, but the buy point remains the same.
The stock has consolidated just below the 200-day line the entire time. However, the 200-day line is now right at the 200 level, below the buy point. A breakout would be valid, with a decisive drop below the 200-day line as a place to exit.
Tesla stock is signaling a move above the 200-day line and 200 level.
Before Tuesday trade, the EV giant was up 17.6% in May and has advanced 80% from a January low. On May 19, TSLA advanced above the 50-day moving average, hitting 181.85.
The stock ranks fifth in IBD's Auto Manufacturers industry group, with Ferrari setting the pace at No. 1. TSLA has a 71 Composite Rating out of 99. The stock also has a 33 Relative Strength Rating. The EPS Rating for Tesla stock is 93 out of 99.
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