Tesla, Inc. (TSLA) experienced a dip in October sales within China despite a significant boost in exports from its Shanghai Gigafactory. According to data from the China Passenger Car Association (CPCA), Tesla sold a total of 68,280 vehicles, with a remarkable 27,795 units shipped overseas. This left the company with only 40,485 vehicles sold within China, marking its weakest monthly performance since April.
However, amidst this dip in domestic sales, TSLA stock is riding a wave of optimism fueled by a post-election rally following Donald Trump’s victory in the 2024 presidential race. This surge in Tesla’s stock price could be attributed to Elon Musk’s vocal support of Trump, which seemingly paid off with a substantial increase in Musk’s personal wealth.
Adding to the positive sentiment surrounding Tesla, B of A Securities analyst John Murphy has raised the price forecast for TSLA from $265 to $350, maintaining a Buy rating on the stock. This bullish outlook from a prominent Wall Street firm further reinforces the belief that Tesla’s future is bright.
Despite the weaker October sales figures, Tesla still saw a year-over-year increase in sales in China, with October sales up 41.43% from 28,626 vehicles sold in October 2023. However, sales were down 43.93% compared to September’s figures, which saw 72,200 units sold.
In the first ten months of 2024, Tesla has sold a total of 500,685 vehicles in China, crossing the 500,000 mark and representing an 8.29% increase compared to the same period in 2023. This achievement underscores Tesla’s continued strong performance in the Chinese market despite the recent dip in October sales.
Earlier this week, Tesla grabbed headlines with an innovative incentive program aimed at boosting car purchases in China. The EV giant is offering Chinese customers a chance to win a tour of its Giga Shanghai factory, strategically capitalizing on China’s current auto consumption stimulus initiatives.
Tesla’s Gigafactory Shanghai, the EV giant’s largest by production volume, boasts an estimated annual output exceeding 950,000 vehicles, according to the third quarter 2024 Update Letter, as reported by Teslarati. The facility manufactures the Model 3 and Model Y for both the domestic Chinese market and international markets.
As of Friday’s close, TSLA shares were trading higher by 7.05% at $317.83, reflecting the bullish sentiment driving the stock’s upward trajectory.
