Electric car sales in China more than tripled to 158,000 in January from a year earlier, although they fell 24% month-on-month, according to the China Passenger Car Association. Tesla’s stock rose.
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Tesla (TSLA) sold 15,484 vehicles in China, a notable drop from 23,804 cars in December.
January figures include Models 3s and Ys made at Shanghai Gigafactory. Tesla is the best-selling EV manufacturer in China. But rivals based in China are closing the gap. Nio (NIO) said it delivered 7,225 vehicles in January, more than four times the number for January 2020. Xpeng (XPEV) increased six times with 6,015 deliveries. AND Li Auto (LI) delivered 5,379 vehicles, an increase of 356% over the previous year.
Tesla is also likely to see competition from US automakers growing in China. Last month, Ford (F) said he would build his Mustang Mach-E in China for the first time to attract Chinese customers.
Retail sales of all passenger cars in China increased by 26% to 2.16 million vehicles last month, the biggest growth since September 2016. Covid-19’s shutdowns last year hit the automotive market hard. Sales fell 20% in January 2020 and ended December 7% below the year-ago period.
The CPCA predicts that car sales will grow 7% in 2021, but warned that the second half of the year may be under pressure due to the shortage of chips that affects the entire industry.
Meanwhile, Chinese officials told Tesla on Monday that it needed to reinforce quality and safety measures. Tesla, which has expanded rapidly in China thanks in large part to Chinese government subsidies, has been haunted by consumer complaints.
Authorities met with Tesla to discuss reports of battery fires, unexpected acceleration and software updates over the air, according to Reuters. Employees urged Tesla to operate in accordance with China’s laws and protect the customer’s rights.
Tesla last week recalled more than 36,000 Model S and Model X vehicles imported from the United States due to problems with the touch screen. This recall follows another one in October that affected more than 48,000 cars imported from the same models in China because of defective suspension systems.
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Tesla Stock
The shares rose 1.3% to 863.42 on the stock market today. Tesla’s shares had a boost on Monday when the company announced it would buy $ 1.5 billion in Bitcoin and accept cryptocurrency as a form of payment.
An escape attempt on a high and tight flag pattern on January 25 with an entry at 884.59 did not go very far, according to analysis by the MarketSmith chart. Tesla’s shares, which are in the IBD Classification, fell and triggered the 7% -8% sale rule.
Tesla shares have also recently found a fundamental rule for a climax race: a 25% to 50% gain within three weeks after a long run of previous breakouts, which could signal that a stock is reaching its peak and is about to retreat.
Among other EV makers, Nio’s shares rose 4.2%, Xpeng rose 1.45% and Li Auto fell 0.1%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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