Tesla, Inc. (TSLA) is poised to continue its upward momentum on Tuesday, fueled by positive news from China. Data released by CnEVPost, citing Li Auto, Inc. (LI), shows robust vehicle insurance registration numbers for Tesla vehicles in China. For the week ending September 8th, registrations reached 16,200 units, a significant increase from the previous week’s 14,400. This marks the strongest growth since the third week of June, when registrations hit 17,500.
Tesla bull and fund manager Gary Black sees this data as a strong indicator of a record-breaking quarter for Tesla. With three weeks remaining in the quarter, the data suggests a 15% year-over-year and 25% sequential growth in registrations.
While Tesla faced challenges in 2022 due to slowing demand and heightened competition, the company’s sales recovery has been supported by the extension of its zero-interest financing program until the end of the quarter. Investors are now eagerly awaiting the upcoming quarterly delivery numbers, expected early October, and the highly anticipated Robotaxi Day on October 10th.
In pre-market trading on Tuesday, Tesla shares rose 1.28% to $219.04. The stock closed at $216.27 on Monday, marking a 13% decline for the year.
This surge in China sales signifies a positive shift for Tesla, highlighting the company’s continued commitment to the critical Chinese market and its potential to overcome recent hurdles. With key events like the upcoming delivery figures and Robotaxi Day on the horizon, investors will be closely watching Tesla’s performance in the coming weeks and months.
