EV maker Tesla’s (TSLA) stock accelerated in pre-market trading despite mixed sales numbers from China showing demand had motored higher on an annual basis in April, but had reversed since March.
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Figures from the China Passenger Car Association for April revealed that Tesla’s China-made electric vehicles sales rose for the sixth straight month of year-over-year increases as it navigates intense competition in the market.
Deliveries of its Model 3 and Model Y vehicles produced at its Shanghai factory and including exports to Europe and other markets last month, totaled 79,478 units. That is up 36% on an annual basis from the 58,459 vehicles it sold in the same month last year.
However, on a monthly basis it is down 7.2% from the 85,670 vehicles it sold in March.
This could be a concern for Tesla investors, especially with its month-on-month trend contrasting with China’s broader EV market. The estimated wholesale volume of passenger NEVs in China was 1.22 million units in April, up 7% both year-on-year and month-on-month.
Tesla Hopes it is on the Right Track
Although Tesla fans will still contend that the April number is ahead of the 69,129 vehicles it sold in January and the 58,599 in February. Indeed, during the January-April period, its total wholesale volume stood at 292,876 vehicles, up 26.67% year-on-year.
Rival BYD’s (BYDDY) wholesale sales in April reached 321,123 units, up 6.96% from March. However, this was the company’s eighth consecutive month of annual decline down 15.51%. Nio (NIO) delivered 29,356 vehicles in April, marking a 22.83% year-on-year increase, but a 17.27% decline from March. Xpeng (XPEV) delivered 31,011 vehicles in April down 11.51% year-on-year, marking its fourth consecutive month of year-on-year decline.
The broader EV market in China has slowed as tax incentives were reduced, government stimulus faded, and consumer confidence weakened. At the same time, competition in the EV sector has intensified, putting pressure on automakers across the market. However, it remains a key market for Tesla – see above.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Moderate Buy consensus based on 13 Buy, 12 Hold and 5 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $410.21, implying a 2.88% upside.
