Over the past months, the rush for electric car companies to produce mass amounts of vehicles to their demanding customers have grown. One of the biggest consumers of EV cars is China, which delivered close to 227,000 cars. They are searching the market for the best hybrid/fuel-cell cars and have recently started producing their own. Tesla, known to be the leader in EV car production, has been competing with China's maker BYD shipped roughly 41,000 cars to China compared to Tesla's 33,000. What's really interesting is that Tesla produced 92,000 cars and only shipped about 63,5000 cars to China. That means China accounted for roughly 45% of Tesla’s total production and 30% of total sales in the three months ended in June. Tesla generated about 21% of total sales in 2020 from China and is growing in the most important market for EVs globally.
In simpler terms:
"The Tesla figures and overall EV market penetration are both good news for the Tesla stock, but it wasn’t getting a boost Thursday. Tesla stock has fallen 2% in early trading Thursday. Chinese delivery figures, however, aren’t the issue. The S&P 500 and Dow Jones Industrial Average, for comparison, are down about 1.3% and 1.1%, respectively, after Japan declared a Covid-19 emergency related to the new Delta variant of the virus. The variant’s threat to the global recovery from the pandemic has unnerved investors—Tesla likely would’ve needed to deliver more in China to buck Thursday’s market trend.
Coming into Thursday, Tesla stock is down about 9% year to date. Shares have paused after an epic 2020 run, where they rose 743%
" (Root 2021).
Root, A. (2021, July 8). Tesla's June China Delivery Numbers Were Good. Why Its Stock Is Dropping. Tesla Stock Is Dropping After Solid China Deliveries. Here's Why. https://www.barrons.com/articles/tesla-stock-deliveries-51625750921.
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