Tesla sold 72,115 China-made vehicles in October, up 0.57% from 71,704 last year, but down 2.6% from 74,073 in September, according to data released Thursday by the China Passenger Car Association (CPCA). However, the global EV giant began delivering its revamped Model 3 last week. TSLA stock surged Thursday.
Tesla experienced a second straight monthly decline in China-made vehicles sales in October after deliveries fell nearly 12% sequentially in September. In June, sales of China-made Tesla vehicles totaled 93,680.
Meanwhile, Tesla insurance registrations in China totaled 10,800 vehicles for the week ending Oct. 29, up more than 33% vs. 8,100 the week prior, as the new Model 3 began to be shipped to customers on Oct. 26, according to data compiled by CnEVPost.
However, registrations in China are well below Q3 levels. Still, Tesla targets a record Q4 to reach its 2023 goal of 1.8 million vehicle deliveries.
Tesla stock advanced 6.2% to 218.44 Thursday during market action, its biggest daily gain since October 4.
Tesla Needs To Set A Deliveries Record
The EV company unveiled its new Model 3 in China on Sept. 1 with official sales beginning on Oct. 19. The global EV giant started delivering the Model 3 on Oct. 26. This means the latest insurance registrations only capture three days of possible Model 3 deliveries. Tesla also launched a slightly updated Model Y earlier in October.
Four-weeks into Q4, Tesla China insurance registrations, a rough gauge for vehicle deliveries, totaled 28,800, down around 22% compared to the same time in the third quarter. This comes as Tesla aims for record-setting deliveries in Q4 to reach its target of 1.8 million vehicle delivered in 2023.
Through the end of Q3, Tesla delivered about 1.3 million vehicles, meaning the company needs to deliver 480,000 in Q4. That's 3% more than its record 466,000 deliveries in the second quarter. Tesla reiterated its 1.8 million vehicle delivery goal in its third-quarter earnings.
However, since Oct. 18, analyst projections have dropped. Wall Street consensus has Tesla vehicle deliveries in 2023 totaling 1.79 million, just below that 1.8 million target, according to FactSet. Analysts' average 2023 EPS estimate has also fallen 5% since Q3 earnings.
Wall Street is also predicting 2024 earnings will now undercut 2022, with analysts expecting EPS of $3.94 — down 12% vs. the $4.50 view before Q3 earnings.
Tesla Stock Falls After Third-Quarter Earnings
Ahead of Thursday trade, TSLA had dropped around 15% since it reported worse-than-expected Q3 earnings and revenue on Oct. 18. Chief Executive Elon Musk on the earnings call preached caution, offering investors warnings about the upcoming Cybertruck and the broader economy. The following day, Tesla stock fell 9.3%.
Since the beginning of 2023, Tesla stock has advanced around 67%, outperforming the broader S&P 500 index. Meanwhile, Tesla is due to begin the preliminary Cybertruck deliveries on Nov. 30.
TSLA is working on its third-straight daily gain. moving back up to its 200-day moving average.
Tesla stock ranks sixth in the 35-stock IBD automaker industry group. The S&P 500 component has a 79 Composite Rating out of a best-possible 99. Tesla stock also has a 73 Relative Strength Rating and a 89 EPS Rating.
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