Tesla shares rise after Chinese-made electric vehicle sales surge in August

Key takeaways

  • Sales of Tesla electric vehicles made in China jumped 9.3% year on year in August.
  • Price cuts and increased production at the Tesla factory in Shanghai helped boost sales.
  • Tesla shares gained 4.7% on Tuesday on the news.

Tesla (TSLA) was the best-performing stock in the S&P 500, as the electric vehicle (EV) maker boosted sales of vehicles made at its Shanghai factory last month thanks to price cuts and an increase in demand. production.

Data from the China Passenger Car Association (CPCA) showed Tesla delivered 84,159 Chinese-made electric vehicles in August, a 9.3% increase from a year earlier and a 31% jump from compared to July, when its Shanghai plant was temporarily closed for retooling.

So far this year, Tesla has built around 625,000 electric vehicles in China, up from around 400,000 in the first seven months of 2022 as higher production capacity and an easing of COVID-19 restrictions helped increase production. updated version of its China-made Model 3 sedan, offering longer range and a higher price.

Tesla cut prices to twice last month to boost demand and announced a further cut on Friday.

After a rocky start to the year, Tesla stock values ​​surged and, with Tuesday's gains, they more than doubled until present in 2023.


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Source: investopedia.com

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