Tesla China Sales Rebound In February: What Investors Should Know

Electric vehicle giant Tesla Inc TSLA delivered 1.81 million units in 2023, which came in ahead of most analyst estimates and guidance from the company.

China remains a key focus for the company and the region may have found a rebound in February after months of declines.

What Happened: Tesla celebrated many highs in 2023, including the Model Y becoming the top-selling electric vehicle of all time and the top-selling vehicle globally for the year.

One area of concern for shareholders is China, which is the company's second-largest region for unit sales behind the U.S.

According to a report from Teslarati, Tesla China had 10,600 insurance registrations for the week of Jan. 29 through Feb. 4, which is the fifth week of 2024. This marked a 22.6% year-over-year increase in registrations.

The sales figure was down 17.2% from the previous week but marks several consecutive weeks of 10,000 or more insurance registrations in the region to start 2024 and several year-over-year increases.

Data from China Passenger Car Association cited in the report said Tesla China sold 71,447 units in January, which was up 8.2% year-over-year.

Why It's Important: Tesla has rolled out several new initiatives to help boost its sales in China including a cash discount on Model Y units, discounts on paint colors for new vehicles and new hardware introduced for vehicles in the region.

While Tesla is a major player in the Chinese electric vehicle market, the company faces increasing competition from other Chinese and European electric vehicle companies.

TSLA Price Action: Tesla shares were up 2.23% to $185.10 on Tuesday at market close versus a 52-week trading range of $152.37 to $299.29. Shares of Teals are down 28% year-to-date in 2024.

Photo: Shutterstock

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