Image Source: PexelsTesla, Inc. (TSLA) reported its best sales month of the year in China for August 2024, while its stock continues to show volatility in the market. The EV firm sold 37% more cars than in August, making it the company’s best sales month in China so far in 2024.
Tesla’s China Sales Rebound from July, Numbers Up 37%
In August 2024, Tesla sold over 63,000 cars in China, marking a 37% increase from July and its strongest month in the country this year.
The company’s China-made vehicle sales, including exports, grew 3% year-over-year to 86,697 units. Deliveries of locally produced Model 3 and Model Y vehicles saw a 17% boost from the previous month.Despite these gains, August sales were slightly down compared to the same period last year, when Tesla sold 64,694 units. The company’s performance in China during the first half of 2024 had declined by 5% year-over-year, making the August rebound particularly significant.Tesla’s growth in smaller Chinese cities has been noteworthy, with a 78% year-on-year increase in deliveries to tier-three cities and a 47% rise in second-tier cities like Hangzhou and Nanjing, based on July data.
To adapt to the Chinese market, Tesla has implemented strategies such as offering zero-interest loans for up to five years and benefiting from local government policies that make its vehicles eligible for official purchases. The company also plans to produce a six-seat variant of the Model Y in China starting in late 2025.
Tesla Stock Sees Slight Gains in Premarket Trading
As of the most recent trading session, Tesla’s stock closed at $214.11, up 3.80% for the day. In pre-market trading, the stock was further up by 0.70% to $215.60. The company’s market capitalization stands at $684.004 billion, with a trailing P/E ratio of 60.14 and earnings per share of $3.55.While Tesla has significantly outperformed the S&P 500 in 5-year returns (1,348.58% vs. 93.14%), it has underperformed the index in year-to-date, 1-year, and 3-year returns. The stock’s high forward P/E of 94.34 suggests strong growth expectations from investors.
Analyst price targets for TSLA stock range widely from $24.86 to $310.00, reflecting diverse opinions on the company’s future performance. Tesla maintains a healthy profit margin of 13.00% and a substantial cash position of $30.72 billion, providing financial flexibility for future investments and expansion.More By This Author:Why Is September Considered A Really Bad Month For Stocks? Dell’s Under-The-Radar Rise As An AI PowerhouseIntel Mulls Foundry Split Amid Financial Struggles, Stock Gains
