Ross Gerber, an investment advisor and CEO of GK ETF, shared the numbers about Tesla (TSLA) deliveries in China in August. As per the China Passenger Car Association (CPCA), Tesla is said to have delivered about 77,000 EVs last month. The figure includes both exported and domestic vehicle deliveries from its Shanghai Gigafactory.
The August deliveries represent a massive 173% increase over July, when Tesla produced only 28,000 vehicles and a 74% increase over August 2021. Moreover, the numbers indicate a return to Tesla’s pre-shutdown manufacturing levels. In June 2022, Tesla registered the highest monthly production of 78,906 autos. Remarkably, Tesla even undertook certain upgrades at its Shanghai plant in July, which are expected to boost its Model Y production going forward.
The news was welcomed with cheers by the Twitterati and Tesla fanatics. On the other hand, a few critics slammed the company for its over-reliance on China and for supporting its economy.
Notably, Tesla’s second-quarter performance was marred by China’s COVID-19-related shutdowns and supply chain issues. Despite the challenges, Tesla posted mixed Q2FY22 results, beating earnings but missing revenue expectations. TSLA stock has lost 32.4% so far this year amid a broader market sell-off.
Is Tesla Stock a Good Long-Term Investment?
Tesla, undoubtedly, is a pioneer in the EV race. The company’s CEO, Elon Musk, has successfully steered the company through all the ups and downs. Plus, the EV maker seems to be on target to manufacture over one million autos annually. Tesla even undertook a three-for-one stock split recently to make its stock more affordable to a larger shareholder base.
The current macro headwinds and Musk’s takeover of social media site Twitter (TWTR) continue to impact TSLA stock. Nonetheless, in the long run, TSLA will regain its lost momentum and make for a good long-term investment.
Meanwhile, analysts remain split on TSLA’s stock trajectory. On TipRanks, TSLA stock has a Moderate Buy consensus rating. This is based on 19 Buys, five Holds, and six Sells. Nonetheless, the average Tesla price forecast of $315.15 implies 16.6% upside potential to current levels.
