Tesla (TSLA) sales of China-made vehicles spiked in August, up 17% vs. July and 3% vs. a year earlier, as China's competitive EV market appears to be rebounding. Tesla stock fell Tuesday.
The U.S. EV giant sold 86,697 China-made EVs in August, including exports to foreign markets, according to industry data released Monday by the China Passenger Car Association. While this marks a sequential and year-over-year increase, through the first eight months of 2024, Tesla China has sold 587,437 vehicles, down 6% compared to the same time frame in 2023.
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Tesla stock dropped 1.6% to 210.64 during market action on Tuesday. Shares closed on Friday at 214.11.
Meanwhile, on Sunday, BYD (BYDDF) reported August sales of 373,083, a big jump vs. July's record 342,383, though there had been buzz that it would get closer to 400,000.
Among fellow China EV makers, Li Auto (LI) reported August deliveries fell vs. July's record. Nio (NIO) deliveries edged down, but held above 20,000 for a fourth straight month. XPeng (XPEV) and Zeekr (ZK) reported big month-to-month gains. All four EV stocks are down sharply in 2024.
In August, Tesla's EV market share in China was about 8.3%.
Troy Teslike, whose delivery estimates and Tesla data tracking are highly respected among retail Tesla investors, posted to X on Sunday that sales in China compared to Q2 "are great."
"Not so much in the U.S.," Teslike added. "It looks like Tesla is balancing out weaker U.S. sales with stronger sales in China."
Tesla China is benefiting from continued five-year, zero-interest loans to buyers, as well as increased government subsidies for EVs.
Analyst consensus has Tesla Q3 deliveries totaling 458,000 units, up more than 5% vs. Q3 2023, according to FactSet. This total would represent the third best quarterly delivery total ever for Tesla, behind Q2 2023's 466,000 and Q4 2023's record setting 485,000 deliveries. Analysts project Tesla matching its record total in the fourth quarter, meaning unit sales would be flat compared to a year ago.
Tesla Stock Performance
TSLA shares popped 3.8% Friday, but fell 2.8% for the week and 7.7% in August to 214.11, dropping below its 50-day moving average.
Tesla stock is down around 14% in 2024, but has rebounded about 60% from a late-April low amid some steep ups and downs.
Shares rallied onto positive ground for the year in mid-July, then rolled over into a five-week slide. Now, into an attempt to climb out of that ditch, the stock has regained support above the 200-day line, but is struggling to hold support at its 50-day moving average, according to MarketSurge charts.
A strong move above the 50-day line could offer an early entry for aggressive investors, perhaps using the Aug. 20 high of 228.22 as a specific trigger. That would also move TSLA up the right side of new base, which has a 271 buy point, though the stock is near the bottom of the consolidations.
Investors appear to be are awaiting the Oct. 10 robotaxi reveal event. Tesla is going to hold that event at the Warner Bros. studio in Burbank, California.
Tesla stock ranks third in the 35-member IBD Auto Manufacturers industry group. The stock has a 55 Composite Rating out of a best-possible 99. Shares also have a 50 Relative Strength Rating and a 57 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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