Tesla’s (TSLA) shares fell about 2% on Tuesday morning, but the American electric vehicle producer finally has some good sales news to hold on to.
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Despite a crash in its October sales in Europe and China, the carmaker sold 9.9% more China-made EVs in November, compared to a year ago.
According to data from the China Passenger Car Association, sales of Tesla’s Model 3 and Model Y vehicles, including in Europe, helped to fuel the monthly sales growth. Sales of the two models — produced at Tesla’s factory in Shanghai, China — rose 41% in November.
Tesla’s Chinese Rivals See Mixed Deliveries in November
The performance comes as Tesla’s China sales hit a three-year low in October, with only 26,006 vehicles sold. For November, Chinese rivals such as Nio (NIO) and Xpeng (XPEV) have reported solid November delivery results.
However, November sales by Tesla’s biggest Chinese rival BYD (BYDDY) fell for the third consecutive month, even as Li Auto (LI) continues to see a significant fall in its deliveries. BYD sales dropped 5% year-over-year to 480,186 units.
Tesla’s Sales Crash in Key European Markets
Despite growing sales of its China-made EVs, Tesla continues to face a sales rut in Europe in November. New registrations — a close proxy for sales — fell by 58% in France, 49% in Denmark, and 59% in Sweden.
However, Norway offered Tesla some respite. Registrations in the Nordic country, one of Tesla’s earliest European markets, rose by 34.6%. This was driven by robust demand for the Model Y, a sport utility vehicle it launched in Europe earlier in August to boost customer demand amid falling sales in the region.
Elon Musk Eyes Robotic Dreams
Tesla’s sales performance comes as CEO Elon Musk looks to the company’s robotaxi and Optimus robot to drive the next phase of growth. The company recently launched a new version of its self-driving technology.
Moreover, Musk on Monday discussed the growing convergence of his major enterprises and his ambition to build, through SpaceX, an AI satellite network powered by solar energy.
Is Tesla a Good Stock to Buy Now?
On Wall Street, analysts continue to back a Hold consensus rating on Tesla’s shares. This is based on 13 Buys, 11 Holds, and 10 Sells issued over the last three months.
Moreover, the average TSLA price target of $383.04 implies 11% downside risk.
