Tesla China Sales For June Come In At About 78,000 Vehicles, Up 142% Sequentially
While Tesla’s Q2 deliveries in the U.S. fell short of expectations, it looks like the company is heading into Q3 with momentum in China.
Tesla sold about 78,000 China-made cars in June, up 142% from May, according to Street Insider, who cited preliminary data announced by the China Passenger Car Association early this week.
The company sold 32,165 cars in China in May, the report notes. In sum, EVs are seeing momentum in China for the month of June, as the country begins re-opening (again). 1.926 million passenger cars have been sold in China in June, the report says, which is a 22% rise from last year.
As we noted yesterday, after Tesla’s big Q2 deliveries miss and despite the fact that the company recorded its best production for June in history, analysts are souring on the name. The latest investment bank to lower its price target on Tesla has been JP Morgan, who said yesterday that shares could fall 40% from current levels.
“Expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand, execution and competition,” a note from JP Morgan analysts said on Tuesday, according to Reuters.
The note continued: “There may be reason to believe that production, and financial results, could be being impacted also by company-specific execution issues at the company’s new factories in Austin and Berlin.”
The investment bank then cut its price target on the company from $395 to $385 – about a 40% drop from the stock’s current levels close to $680 per share.
JP Morgan’s price target is considerably lower than the Refinitiv median price target, which stands at $950.
Recall, Tesla was out over the weekend said that it delivered just 254,695 vehicles for Q2 2022, as the company hit snags due to its Shanghai shutdown and supply chain issues.
Despite this, the company’s June month was the highest vehicle production month in Tesla’s history, according to Bloomberg. The company’s deliveries represent a 26.7% gain in deliveries from last year and a drop from last quarter’s record of 310,048.
The drop marked the lowest delivery quarter since Q3 2021 for Model 3/Y vehicles.