Tao Lin, a Vice President at Tesla (TSLA), posted on Weibo that the EV maker’s Shanghai factory has started ramping up production for the fourth quarter, which is typically Tesla’s busiest time for deliveries, according to Reuters. Since the Shanghai plant is Tesla’s largest and ships vehicles to both China and other markets, the news was welcomed amid worries that demand is slowing and competition is growing in Asia and Europe.
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In fact, it is worth noting that Tesla sold 71,525 vehicles in China during September, its second-best monthly total this year, just behind March. That was a 25% increase from August, although sales were down less than 1% compared to the same month last year. Tesla’s market share in China also grew from 8.33% to 8.66%, according to the China Passenger Car Association (CPCA). One reason for the boost was the introduction of the new Model YL, which is a three-row, six-seat version of the Model Y designed specifically for the Chinese market.
It launched in August, with deliveries beginning in early September, and helped push wholesale Model Y numbers in China up 17% to 59,000 units for the month. As a result, Tesla’s recent stock surge has been driven by a mix of strong Chinese sales, solid Q3 delivery results, and investor excitement over AI trends. However, the company could face new hurdles this fall, especially in the U.S., where the loss of EV tax credits might hurt demand.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 15 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $363.28 per share implies 15% downside risk.
