Tesla (TSLA) insurance registrations in China fell nearly 20% last week even as China’s overall car market recovered from the Lunar New Year holiday. TSLA shares rose Tuesday after consecutive losing sessions.
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The global EV giant had 6,963 insurance registrations for the week of February 6-12. That was a 19% drop after registrations jumped to 8,643 the week before. From the Fed. 6-12 insurance registrations, 1,096 were Tesla Model 3 vehicles, while there were 5,867 registered Tesla Model Y vehicles, according to CnEVPost.
Last week, electric vehicle sales in China continued to recover. Top Tesla competitor BYD (BYDDF) recorded a total of 31,417 insurance registrations, up 29% from the previous week. China EV startup Li Auto (LI) registrations rose 81% to 4,062, Nio (NIO) registrations rose 56% to 3,045 and XPeng (XPEV) rose 43% to 1,396.
Denza, the luxury EV maker owned by BYD and Mercedes-Benz (DDAIF), had 1,457 insurance registrations last week.
Tesla shares rose 4.5% during market trading on Tuesday to 203.42. On Monday, TSLA shares fell more than 1% to 194.64. Tesla stock is up 100% from its Jan. 6 bear market low of 101.81. As of Friday, Tesla stock had had eight consecutive sessions of gains.
On Sunday evening, Tesla increased the price of the US Model Y Performance by $500, a week after price increases for the Model Y Long Range and Performance by $1,500 and $1,000, respectively. Tesla also cut the base price of the Model 3 by $500 for the second time in a week.
This comes after Tesla raised the base price of the Model Y in China by 2,000 yuan ($295) to 261,900 yuan ($31,569) on Friday. This follows a 29,000 yuan cut on January 6, which was part of broader, more general cuts in China and Asia.
Tesla sold 66,051 Chinese-made vehicles in January, up 10.4% year-on-year and up 18.4% from December. Of those deliveries, the global EV giant exported 39,208 vehicles from its Shanghai plant. Tesla is more focused on exports from Shanghai in the first half of the year.
Tesla’s January exports rose 183% compared to December but fell 3% compared to January 2022. Meanwhile, Tesla delivered 26,843 vehicles in China, down 36% from December but up nearly 39% from January 2022.
CEO Elon Musk told investors Jan. 26 that Tesla had “the strongest year-to-date orders at any time in our history” in January. Musk added that orders were coming in “almost twice as fast as production.”
Signaling expectations of rising demand, Tesla plans to produce an average of nearly 20,000 vehicles per week at its Shanghai plant in February and March, according to Reuters. The company expects monthly production to reach around the September level of 82,000 vehicles.
Tesla Stock: Investor Day
Meanwhile, Musk has announced his “Master Plan 3,” which will be unveiled at Tesla’s Investor Day on March 1. He has dubbed the plan the “path to a fully sustainable energy future for the planet”.
Musk tweeted Monday that Tesla’s definition of “investor” includes “the people and life of the earth.”
“It will be a message of good hope and positivity for the future,” Musk wrote.
CFRA Research downgraded Tesla stock to “buy” from “strong buy” last week. However, the company raised its price target on Tesla stock to 250 from 210.
“All eyes are on TSLA’s upcoming Investor Day on March 1, and we note that historically, TSLA’s shares have tended to surge ahead of such events,” wrote CFRA analyst Garrett Nelson.
TSLA shares rank fourth in IBD’s automaker industry group. Tesla stock has a composite rating of 65 out of 99. The stock has a relative strength rating of 16, an IBD Stock Checkup exclusive gauge of stock price movements. The EPS rating is 99.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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