Tesla’s (NASDAQ:TSLA) upgrade to its Shanghai facility is helping the electric vehicle (EV) pioneer boost the sales of its China-made vehicles. As per the latest data provided by the China Passenger Car Association, Tesla’s wholesale deliveries of China-made vehicles came in at 83,135 units in September, marking a record monthly figure in the country for the company. As per Reuters, Tesla stated, “The record high sales of China-made Tesla cars showed electric vehicles have been leading the mobility trend.”
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Tesla’s September China wholesale deliveries reflected an 8% rise compared to August. Further, it also exceeded the more than 5% (month-over-month basis) growth in overall wholesale EV sales in China.
Tesla’s Shanghai factory was severely impacted by lockdowns and COVID-related restrictions for a major part of the second quarter. Power shortage due to a heat wave in the country also hit the company’s supply chain. Tesla restored its full-production capacity at the Shanghai factory in mid-June. An upgrade to the facility in July, which as per Reuters aimed at boosting the weekly capacity to 22,000 from nearly 17,000 in June, helped boost production.
China, the world’s largest EV market, is a key growth area for Tesla. The company continues to enhance its production in China as EV competition heats up in the country. Tesla manufactures its Model 3 and Model Y vehicles at the Shanghai facility for sales in China and for export to other markets, like Europe and Australia.
Last week, Tesla reported Q3 deliveries of 343,830 vehicles, lagging analysts’ consensus estimate of around 364,000. The company produced 365,923 units in the third quarter. Aside from lower-than-anticipated Q3 deliveries, TSLA stock has also been under pressure due to the Musk-Twitter saga.
Is Tesla stock a Buy, Sell, or Hold?
Wall Street is currently cautiously optimistic about Tesla stock, with a Moderate Buy consensus rating based on 18 Buys, seven Holds, and five Sells. The average TSLA stock price target of $306.15 implies 37.2% upside potential from current levels. Shares have declined nearly 37% year-to-date.
