Tesla stock: sales in China strong, target price – $ 1,580

The China Passenger Car Association announced Wednesday its electric vehicle sales for November. Tesla (TSLA) sales again. Tesla shares rose on Wednesday.


Tesla Shanghai sold 52,859 Chinese Model 3 sedans and Model Y crossovers in November, of which 21,127 were exported. In October, Tesla sold 54,391 Chinese-made vehicles, including 40,666 for export. Most of these exports go to Europe. Tesla Shanghai exports most of its products in the first month of the quarter and most in the second month, such as November.

The future Tesla plant in Berlin is expected to eventually produce most of the Tesla vehicles destined for European customers, starting with the Model Y. However, the opening of the plant has been delayed several times. The latest chart shows Berlin will be operating sometime in December, although production growth is expected to be slow.

CPCA said Wednesday that sales of electric vehicles in China reached 378,000 units in November, up 122% from last year and 20% from October. He predicts that new energy car sales will surpass 2.4 million vehicles in 2021. According to the CPCA, total passenger car sales in China reached 1.85 million in November, down 12.5% ​​from a year ago.

Chinese electric vehicle startups

Meanwhile, Chinese electric vehicle startups showed strong sales in November. Nio (NIO) sold 10,878 vehicles in November, up 106% from a year earlier. This is sharply higher than in October, when only 3,667 units were delivered amid production line stoppages to prepare for new models. Nio had expected to ship 23,500-25,500 electric vehicles in the fourth quarter, which is almost unchanged from the third quarter.

Xpeng (XPEV) delivered 15,613 electric vehicles, up 270% from a year earlier and up from 10,138 in October. The company had forecast shipments in the 4th quarter at 34,500-36,500, well above the 25,666 units in the 3rd quarter, but it looks like it could easily exceed that figure.

Lee Auto (LI) delivered 13,485 Li One hybrid SUVs in November, up 190% from a year earlier and significantly more than 7,649 in October. Li Auto expects fourth-quarter shipments to be between 30,000 and 32,000 units.

Powered by Warren Buffett BYD (BYDDF) Sales in November were 91,219 units, up 249% from a year earlier, and exceeded total sales in October (81,040 units). Of these, 90,121 were private vehicles. This included 46,137 EVs, up 153%, while plug-in hybrids rose 500% to 43,984. For the sixth straight month, the EV and battery giant has increased sales of all-electric and plug-in hybrid vehicles by about 10,000 units.

Germany Volkswagen (VWAGY) said it sold 14,167 all-electric IDs. series cars in China in November, another monthly record. 12,000 copies were sold in October.

Electric car promotions, Tesla shares

Tesla shares in the stock market are up 1.6% today to 1,068.96, adding a 4.2% gain on Tuesday. The electric car giant bounced off its fast-growing 50-day moving average, ending a short downtrend. A new base may be formed. The TSLA promotion is on the leaderboard.

New Street Research analyst Pierre Ferragou raised his target price for Tesla shares to a new high of $ 1,580 on Tuesday, citing his outlook for Q4 earnings.

Among Tesla’s Chinese rivals, Nio jumped 5.8% to 35.05 but still trades well below its 50-day and 200-day lines. XPEV shares rose 1% on Wednesday after rising 2.4% on Tuesday. Li Auto shares rose 2.1%. All three stocks fell late last week on fears of delisting in China.

BYDDF shares rose 0.5% to 37.92 on Wednesday after rising 2.1% to 37.74 on Tuesday, just above the buying range from the double-bottom buy point of 35.35, according to MarketSmith chart analysis. BYDDF shares are traded OTC in the United States and listed in Hong Kong.

Volkswagen shares traded in the US rose 7.6% on Wednesday, breaking the 50-day mark.

Follow Adelia Cellini Lineker on Twitter. @IBD_Adelia


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