Tesla Stock: China sales in November fell nearly 20% after the introduction of the new Model 3

Tesla (TSLA) Sales of Chinese-made cars saw a jump of more than 10% in November compared to last month, even as the number decreased by 18% compared to last year. The electric car giant began deliveries of its revamped Model 3 at the end of October, according to data released by the China Passenger Car Association (CPCA) on Monday. TSLA stock fell early.

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Tesla sold 82,432 Chinese-made vehicles in November, up 14.3% from 72,115 in October, breaking two consecutive months of consecutive declines in car sales. However, Tesla’s total November sales fell 17.8% from 100,291 in November 2022. The data released by the CPCA on Monday includes exports.

Tesla stock fell 1.5% to 235.20 on Monday during market action. Last week, TSLA shares rose 1.4% to 238.83. However, Tesla stock suffered three straight losses in the Cybertruck delivery event.

TSLA recently intensified the electric vehicle price war again in China. The US-based electric car company has raised Model Y prices in China for five consecutive weeks, dating back to the end of the third quarter.

However, as Tesla continues to raise vehicle prices in China, the company has begun offering a US$1,127 insurance subsidy for base-model Model 3 and Model Y vehicles in stock through the end of the year, local media reported. Entry-level models account for the vast majority of Tesla’s sales in China.

Tesla is also offering low-interest loans to stimulate demand. Top competitor BYD (BDDF) recently intensified sales on a range of models, with the Chinese electric car and battery giant aiming to achieve a sales target of 3 million electric vehicles in 2023. Other electric car makers in China are rolling out new models at very competitive prices.

Tesla aims to achieve a record in the fourth quarter

Meanwhile, Tesla is looking to meet its goal of delivering 1.8 million vehicles in 2023. So far, in the fourth quarter of 2020, Tesla’s insurance registrations in China, a rough measure of vehicle deliveries, totaled 88,500 vehicles for the quarter, down Less than 1% compared to the same point in the year. Q3.

Ahead of Tesla’s delivery of 12 Cybertrucks on Thursday, the EV company unveiled its new Model 3 in China on September 1 with official sales starting on October 19. Tesla began deliveries of the “Highland” Model 3 on October 26 in China, with European deliveries also in the works. The global electric car giant also launched a slightly updated Model Y in China earlier in October.

Through the end of the third quarter, Tesla has delivered about 1.324 million vehicles globally for the year, meaning the company needs to deliver roughly 476,000 in the fourth quarter to reach 1.8 million. This is up 2% from the record 466,140 delivered in the second quarter and a rebound from 435,059 in the third quarter. Tesla reiterated its goal of delivering 1.8 million vehicles in third-quarter earnings.

However, since October 18, analyst forecasts have declined. The Wall Street consensus puts Tesla’s total vehicle deliveries in 2023 at 1.797 million, just below the target of 1.8 million, according to FactSet. Meanwhile, Wall Street is currently expecting 473,000 deliveries in the fourth quarter.

Analysts’ average estimate for 2023 earnings per share has also fallen 7% since the company’s third-quarter earnings report. Wall Street expects 2024 earnings will now undercut 2022, with analysts forecasting EPS of $3.87 – down 14% versus $4.50 before Q3 earnings.

Tesla stock performance

The stock is building the right side of a double bottom base giving it a buy point of 278.98, according to Market Smith analysis. Tesla stock is about 15% below its official buy point.

Since the start of 2023, Tesla stock has risen more than 90%, easily outperforming the broader S&P 500 index.

Tesla stock ranks sixth in the 35-stock IBD Automotive industry group. The S&P 500 component has a Composite Rating of 85 out of the best possible 99. Tesla stock also has an 83 Relative Strength Rating and an 88 EPS Rating.

Please follow Kit Norton on X, formerly known as Twitter, @ketnorton For more coverage.

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