Tesla, Inc. (NASDAQ: TSLA) defied the odds and reported a month-over-month increase in deliveries in February, according to data released by the China Passenger Car Association.
Tesla analyst: Wedbush analyst Daniel Ives has a neutral rating and a target price of $ 950 for Tesla shares.
Tesla’s Thesis: Tesla delivered 18,300 vehicles to China in February, representing an 18% increase from January and signaling a decline in demand for Tesla in the key region of China, Ives said in a note.
All three Chinese electric vehicle manufacturers listed in the U.S. reported last week drop in deliveries from February to month.
The month-on-month growth for Tesla is impressive, given that it occurred despite the Lunar New Year holidays in China taking up a significant part of February, the analyst said.
Related link: Tesla reaches a high price of $ 1,200: ‘The fireworks are not over yet’
The company is expected to achieve an annual run rate of more than 200,000 units in China by 2021, which remains a key element in achieving global deliveries of 750,000-800,000 units for the year, he said.
From the unit’s point of view, Tesla’s month-on-month growth in deliveries – as opposed to declines reported by BYD Company Limited (OTC: BYDDF), Nio Inc – ADR (NYSE: NIO) and XPeng Inc – ADR (NYSE: XPEV) and Li Auto Inc. (NASDAQ: LI) – signals a large directional fluctuation in market share, said Ives.
Price cuts and the introduction of Model Y are fundamental to some of the changing market dynamics in China, the analyst said.
TSLA Price Action: Tesla’s shares were up 19.53% to $ 672.94 in the last scan on Tuesday.
Photo courtesy of Tesla.
Most recent reviews of TSLA
Meeting | Company | Action | From | For |
---|---|---|---|---|
March 2021 | New street | Upgrades | Neutral | Purchase |
February 2021 | Morgan Stanley | Keeps | Overweight | |
February 2021 | Piper Sandler | Keeps | Overweight |
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