Tesla’s factory in Shanghai began production around two years ago.
Xiaolu Chu/Getty Images
Tesla had a blowout month in China as electric vehicle penetration of new car sales in the country topped an incredible 20%.
EVs are gaining momentum in the world’s largest new car market.
Tesla (ticker: TSLA) delivered about 56,000 vehicles from its Shanghai facility in September, about 12,000 more than it did in August, according to Citigroup analyst Jeff Chung, who cited Chinese industry data in a Tuesday report.
Roughly 52,000 vehicles went to Chinese customers with about 4,000 exported to Europe. Tesla, from its Shanghai facility, said it prioritizes European deliveries early in a quarter and Chinese deliveries late in a quarter. That pattern played out in the third quarter. Back in July, Tesla made roughly 33,000 vehicles in China and exported about 24,000 to Europe.
Tesla stock was 0.6% higher in premarket trading. S&P 500 and Dow Jones Industrial Average futures both were roughly flat.
Tesla shares weren’t getting a bigger bump because the EV maker’s quarterly deliveries already were reported on Oct. 2. On Tuesday, investors just got the breakdown on Chinese sales.
Tesla delivered a record 241,000 vehicles in the third quarter—more than Wall Street was projecting. Tesla shares have gained roughly 2% since deliveries were reported. The Nasdaq Composite Index has fallen about 1% over the same span.
Tesla’s gains come amid wider strength in the delivery of new-energy vehicles—China’s term for electric vehicles and other green forms of transport—deliveries of which rose about 180% year over year, hitting 332,000. So far in 2021, about 1.8 million EVs have been sold in China, up about 203% year over year.
EV penetration hit 21% of new cars sales in September. Year to date, EVs have accounted for almost 13% of new car sales in China. In 2020, EV penetration was about 6%.
Tesla has faced some headwinds in China over the past year, coming under regulatory scrutiny for data security and safety concerns , battling high-profile PR issues, and facing the prospect of a more consolidated domestic industry to compete against.
Tesla is due to report third-quarter earnings on Oct 20. Wall Street expects the company to report earnings of $1.56 a share from $13.5 billion in sales. Per share earnings estimates are up about a dime since quarterly deliveries were released.
[Read More: Tesla’s Musk Calls Chinese EV Rivals ‘the Most Competitive in the World’]
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