Tesla stock advanced, looking to end a string of weekly losses, Friday as the global EV giant ratcheted up China prices on its two most expensive models. The price increases followed a drop in deliveries of China-made vehicles in April, compared to March.
Tesla delivered 75,842 vehicles made in China during the month of April, down nearly 15% from March, according to new data from the China Passenger Car Association (CPCA) Friday. The current data does not breakdown exports.
Some industry analysts speculated that deliveries of China-made Teslas could have been driven lower in April by China customers delaying purchases in hope of upcoming price cuts, according to CnEVPost. A round of price hikes could signal to those potential buyers that no cuts are coming, potentially prodding a round of deferred orders.
Tesla has slashed prices worldwide multiple times in 2023, starting in January and continuing into April. The only exception is China, where Tesla cut prices significantly in late October before the early January cuts.
China EV Sales 'Better Than Feared' In April Amid Warning Of More Price Cuts
On Friday, Tesla raised Model S and Model X vehicle prices in China by around $2,750. The EV giant offers free supercharging for three years with a purchase of the premium vehicle models. The Model S in China now costs around $117,100 with the Model S Plaid coming in at $149,000. The Model X now costs $130,100 in China.
Earlier in the week, Tesla hiked prices by $290 on the Model 3 and Model Y in China. The global EV giant also increased prices on its two popular vehicles in other markets including the U.S.
Tesla: A Deal With The Enemy
Meanwhile, Tesla continues to face competition in China from BYD, Nio, Li Auto and XPeng.
However, Tesla appears to have reached a deal with BYD to use the China auto giant's batteries. Tesla has started to produce a base Model Y trim at its Germany plant using battery cells made by BYD, according to media reports.
There have long been rumors Tesla sought to utilize BYD batteries in its vehicles, despite efforts by the U.S.-based EV company to control more of the integral components for vehicle manufacturing.
Tesla Stock
TSLA surged 5.5% to 170.06 Friday during market trade. Ahead of Friday trade, Tesla stock was down 1.9% on the week. Shares were on pace for their fifth straight weekly loss, the longest loss streak since March, 2021.
After Friday, TSLA ended the week up 1.18%.
Tesla stock no longer has a base. If Tesla rebounds it could form a double-bottom base with a 207.89 buy point. Within a few weeks, the 200-day line should be below that potential entry.
Tesla sits seventh in IBD's Auto Manufacturers industry group. TSLA has a 60 Composite Rating out of 99. The stock has also has a 18 Relative Strength Rating. The EPS Rating is 93 out of 99.
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