Tesla, Inc. (TSLA) shares are seeing a surge in pre-market trading on Tuesday, defying the broader market’s downward trend. The optimism surrounding Elon Musk’s company stems from strong sales figures in China. According to data released by the China Passenger Car Association, Tesla sold 86,697 vehicles in August, marking a substantial 17% increase from July and a 3% rise compared to the same period last year. This positive performance comes amidst a period of extended zero-interest financing offered by Tesla, making its vehicles more appealing to consumers.
While the sales numbers are impressive, the impact on Tesla’s bottom line remains to be seen. A more detailed breakdown of domestic sales and exports is expected to be released later this week.
Tesla’s August performance outpaces several of its Chinese rivals. Warren Buffett-backed BYD Co. Ltd. (BYDDY, BYDDF) reported a 14.21% increase in sales compared to July and a 1.95% growth year-over-year, with total battery electric vehicle sales reaching 148,470 units. Meanwhile, August deliveries for both Nio, Inc. (NIO) and Li Auto, Inc. (LI) fell compared to July, despite recording increases from a year ago.
The robust sales figures in China suggest a positive trend for Tesla, although the long-term profitability of these sales remains to be seen. As the electric vehicle market continues to grow, Tesla’s performance in key markets like China will be crucial for its overall success.
