Tesla’s (TSLA) car sales in Turkey skyrocketed in August, making it the second-best-selling brand in the country. Indeed, the company sold 8,730 Model Y vehicles, which was up 86% from July. This surge came as many Turkish buyers looked for ways to lower their tax burden and protect against the falling value of the Turkish lira. In the electric vehicle segment, Tesla led the way by making up 50% of all EVs sold in August. At the same time, BYD (BYDDF) came in second with 1,639 units sold, while Turkey’s own EV brand TOGG followed with 1,249.
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Analysts say that part of Tesla’s growth is due to irregular shipment schedules from its German factory. In fact, back in March and April, Tesla only sold about 100 units in Turkey, but that number shot up to over 4,000 in both June and July. During those months, Tesla grabbed about one-third of Turkey’s EV market. Interestingly, there’s a growing shift toward EVs in Turkey that is being driven by lower tax rates and currency concerns. Indeed, EVs have consistently held a 20% market share over the past three months, which is up from just 8% a year ago.
It is also worth noting that Tesla’s base Model Y, the only one sold in Turkey, falls into the country’s lowest tax bracket, thereby making it far cheaper than gas-powered cars, even after a tax hike in July. This is because Turkey’s complicated tax system can push car taxes as high as 284%. Plus, since Teslas are priced in euros, many buyers see them as a smart way to hedge against the lira, which has lost more than 80% of its value in recent years.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 14 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $306.42 per share implies 7.5% downside risk.
