Tesla Stock Tests Key Support Despite Strong China EV Sales, Cheaper Model Y

3 weeks ago 11

Tesla (TSLA) China income were beardown successful June, portion U.S. car elephantine besides unveiled a cheaper mentation of its made-in-China Model Y crossover. But Tesla banal fell aboriginal Thursday, signaling a determination beneath cardinal moving averages Wednesday, amid a crisp marketplace sell-off.


The China Passenger Car Association said Thursday that Tesla sold 33,155 EVs successful June, including 21,532 locally made Model 3 sedans and 11,623 Model Y crossovers. The wide fig includes 28,138 section income and 5,017 exports.

Tesla income roared backmost successful May aft slumping successful April. Tesla sold 33,463 EVs successful May, up 29.5% from 25,845 successful April. Tesla income were 35,478 successful March.

In May home income surged 88% to 21,936. Tesla besides exported 11,527 vehicles that month.

"China started disconnected precise brushed this 4th with a disastrous April show though dependable betterment passim May and June were cardinal and gives Tesla beardown momentum heading into 2H with immoderate of the PR nightmares/safety issues present nether power successful this cardinal region," wrote Wedbush expert Daniel Ives successful a June 30 note.

Ives has an outperform standing connected Tesla banal and a terms people of 1,000.

Tesla acceptable a record for quarterly deliveries, astir gathering Q2 forecasts. The EV shaper reported past week that it delivered 201,250 vehicles worldwide successful Q2, up from the anterior grounds of 184,800 successful Q1 and 90,900 a twelvemonth ago.

Tesla this period began long-delayed deliveries of the Model S Plaid, the revamped mentation of the luxury sedan, but those weren't expected to ramp up anytime soon. It's not wide erstwhile Model X Plaid deliveries volition begin.

Cheaper Model Y

Tesla besides unveiled a cheaper, lower-range made-in-China Model Y. With the little price, the MIC Model Y is eligible for authorities subsidies, bringing the after-subsidy terms to 276,000 yuan ($42,600). That's astir 20% little than the longer-range Model Y. The modular scope Model Y has a stated scope of 525 kilometers (326 miles) vs. the longer-range Y's 594 kilometers.

Tesla began taking orders for the standard-range MIC Model Y connected Thursday with deliveries starting arsenic soon arsenic adjacent month.

Tesla concisely sold a Model Y SR+ successful the U.S., but was rapidly discontinued amid with a constricted scope and constricted demand.

China EV Sales

The China Passenger Car Association reported wide EV income of 186,000 past month, up 175% vs. a twelvemonth earlier. Sales of caller vigor vehicles, which besides see hybrids and fuel-cell vehicles, leapt 166% to 227,000.

Tesla's China-based rivals reported strong Q2 deliveries past week. Nio (NIO) delivered 8,803 vehicles successful June, up 20.4% vs. May. Year implicit year, June income surged 116%. Second-quarter deliveries totaled 21,896 electrical SUVs, up 112%.

Xpeng (XPEV) delivered 6,565 vehicles successful June, up 15% vs. May and jumping 617% vs. a twelvemonth earlier. Q2 deliveries soared 439% vs. a twelvemonth earlier to 17,398.

Li Auto (LI) reported June deliveries of 7,713, a 78.4% surge vs. May and 321% vs. a twelvemonth earlier. Second-quarter deliveries deed 17,575, up 166% vs. a twelvemonth earlier.

Tesla Stock

Tesla banal slumped 2.5% earlier the unfastened successful the stock marketplace today. That seems to bespeak a wide marketplace sell-off alternatively than thing related to Tesla specifically. But TSLA banal is acceptable to trial oregon undercut the 50-day and 200-day moving averages.

The Leaderboard stock fell 2.3% to 644.65 connected Wednesday.

Shares flashed immoderate assertive bargain signals successful June, but those look to beryllium disconnected the board.

Tesla banal is astir 28% disconnected its all-time precocious of 900.40, which it deed intraday connected Jan. 25, according to MarketSmith illustration analysis.

Its relative spot line is trending downward again. Tesla's RS Rating is 80 retired of a imaginable 99. Its EPS Rating is 74.

Other EV stocks tumbled connected Wednesday. Nio banal sank 8.45%. Xpeng dropped 5.9% arsenic it debuted connected the Hong Kong exchange. Li Auto fell 4.6%.

All 3 stocks are down solidly aboriginal Thursday.

China accounts for 30% of Tesla's sales. It is the second-largest marketplace for the EV maker, down the U.S.

Global spot and artillery shortages person stymied Tesla's maturation plans. Most recently, the institution scrapped plans to marque a Plaid Plus mentation of its luxury Model S vehicle.

The Plaid Plus, Cybertruck, Tesla Semi and immoderate aboriginal Model Y vehicles were each slated to usage 4680 artillery cells, which are expected to connection a large beforehand successful scope and cost. Tesla has said wide accumulation of the 4680 artillery cells whitethorn not hap until 2022.

Follow Adelia Cellini Linecker connected Twitter @IBD_Adelia.


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