tesla

Tesla (NYSE: TSLA) sold 83,135 China-made vehicles in the wholesale market in September, which was a new monthly record for the Elon Musk-run company. However, its deliveries were less than half of what BYD Motors delivered in the same month in China.

Tesla’s deliveries in China increased by 8% on a month-on-month basis and outpaced the 5% increase in wholesale vehicle deliveries in the country. China’s automotive production took a hit in April and May amid the COVID-19 lockdowns. However, automotive production rebounded in June and both Tesla and NIO produced a record number of cars in the month.

Tesla delivered 78,906 vehicles in China in June. However, production fell in July as the company was upgrading the plant. The company’s China Gigafactory has now a nameplate weekly capacity to produce 22,000 cars.

Tesla Sold Record Cars in September but Trailed BYD

BYD, which is backed by Berkshire Hathaway, delivered 200,973 vehicles in China in September, which was 15% higher than the previous month. Overall, BYD delivered 538,704 NEVs in the third quarter which easily beat Tesla. While Tesla was the market leader in NEV sales in 2021, it lost the crown to BYD in the first half of the year. With the nearly 200% rise in Q3 deliveries, BYD extended its lead over Tesla.

In August BYD began delivering The BYD Seal which is similar to Tesla’s best-selling Model 3 sedan. However, the model is priced at $10,000 below that of Tesla’s Model 3. BYD expects to sell 4 million Seal cars in 2023.

Looking at other Chinese EV companies’ September deliveries, NIO delivered 10,878 EVs in September which took its third-quarter deliveries to 31,607, a new quarterly record. The company’s cumulative deliveries reached 249,504 at the end of September. NIO stock has plunged in 2022 but most analysts rate NIO as a buy.

Xpeng Motors delivered 8,468 vehicles in September. Its deliveries totaled 29,570 in the third quarter which was 15% higher than the corresponding quarter last year.

TSLA Stock Had Its Worst Week Since 2020

Li Auto delivered 11,531 cars in September which was 62.5% higher YoY. The company sold more cars than both NIO and Xpeng Motors in September. However, its deliveries were 26,524 in the third quarter, a YoY rise of only 5.6%. The company’s deliveries fell by more than half in August which took a toll on its quarterly production.

Tesla stock tumbled last week and it was the worst week for the company since 2020. Along with the broader market sell-off, Tesla’s Q3 delivery report also spooked markets. Tesla delivered a record 343,830 cars in the quarter. While the deliveries increased strongly both on a YoY and sequential basis, they were lower than what analysts were expecting.

Elon Musk’s offer to buy Twitter at original terms did not help matters as many fear that acquiring Twitter would be a distraction for the world’s richest person who already splits time between Tesla and SpaceX. However, TSLA bulls continue to remain bullish on the company.

Analysts Advice Buying Tesla Stock After Inflation Reduction Act

After President Boe Biden signed the Inflation Reduction Act of 2022, several Wall Street analysts issued bullish notes on Tesla. According to Wolfe Research, Tesla would stand to gain from the Inflation Reduction Act. Wolfe upgraded Tesla stock to a buy and raised its target price.

Tesla cars would now be eligible for the $7,500 EV tax credit from 2023 which would help it better compete against rivals. The company has said that it would begin Semi deliveries this year. Next year, Tesla is also slated to begin the deliveries of Cybertruck, which would compete with Ford’s best-selling F-150.

The ICE (internal combustion engine) version of the F-150 is America’s best-selling pickup for decades and so far, the all-electric version known as the F-150 Lightning is also the best-selling EV pickup model.

That said, the model does not face much competition so far as Rivian, which sells the R1T electric pickup is in the early days of production. Rivian has issued a vehicle recall which would impact all the vehicles that it has sold to date.

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