Tesla Tesla EV from China factory sets a record. What does that mean for the stock.

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Signs outside the new Tesla South Austin showroom inside the Yard Development in Austin, Texas, U.S., on Saturday, October 16, 2021.

Mark Felix/Bloomberg

Tesla’s sales in China were out of this world. However, the stock hardly buds because the numbers could have been extrapolated from previous releases. However, it contained valuable information for investors interested in where Tesla’s business — and stocks — headed next.

Different data points appear at different times. Some steal thunder from others. Everyone already knows that Tesla delivered a lot of vehicles in the fourth quarter. But the Chinese delivery number is still worth knowing. Production from Tesla’s Shanghai facility is impressive, even if another company takes the delivery crown in December.

Tesla

(Stock ticker: TSLA) It delivered nearly 71,000 vehicles from its Shanghai plant in December, according to Citigroup analyst Jeff Chung. That appears to be a record, although Tesla did not respond to a request for comment on the release of industry data.

The 71,000 figure is up from about 53,000 that were produced in November. That’s a huge leap and giving December numbers annually means the Chinese plant could be able to produce roughly 850,000 cars a year.

Tesla delivered a total of about 936,000 cars in 2021. Production came from two factories: Fremont, California and Shanghai, China. Tesla is about to start two additional plants, one in Texas and one in Germany.

Most of the vehicles Tesla produced in China in December went to Chinese customers. Tesla serves the European and Chinese markets from this factory. Typically, Tesla meets European orders early in the quarter and Chinese orders later in the quarter. This makes the market share in both regions fluctuate from month to month. Tesla has, in recent years, been able to sell almost all the vehicles it can make.

Chinese retail sales of personal vehicles have reached nearly 2.1 million units, according to Zhong’s report on Tuesday. Electric vehicle sales – including sales of plug-in hybrid vehicles – totaled 475,000 units. Electric vehicle penetration accounted for approximately 23% of new vehicle sales. This penetration rate is much higher than in Europe and the United States and shows that ordinary car buyers will become electric when products are available.

For the full year in China, electric vehicle sales were about 3 million units, or nearly 15% of the 20 million vehicles sold in 2021.

Tesla had a good month, but

Globalism

(1211 Hong Kong) still recorded more wholesale sales. BYD has sold more than 93,000 vehicles. Tesla’s wholesale volume again reached around 71,000 units. This was the second largest amount noted in Chung’s report.

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general motors

(GM) The joint venture has registered more than 60,000 units. Great Wall has registered nearly 21,000 units. Chery recorded about 20,500 EV sales. jelly and

XPeng

(XPEV) recorded wholesale sales of about 16,000 units.

Engine jack

It came in 14,500 units.

Lee Otto

(LI) 14,087 births were recorded. SAIC’s domestic brand and a

Volkswagen

(VOW3.Germany) The joint venture registered about 15,000 units and 11,000 units respectively.

NIO

(NIO) and Changan handed over 10,000 units each.

These 13 brands accounted for about 80% of the 475,000 wholesale sales. China’s auto market remains fragmented.

Tesla shares don’t offer much in Chinese delivery news. Shares were up 0.3% at 1:48 p.m., while shares rallied


Standard & Poor’s 500

And


Dow Jones Industrial Average

They rose 0.6% and 0.3%, respectively.

This is expected. Most of Tesla’s stock reaction to the delivery numbers occurred on January 3, the first trading day after the results were announced. Tesla stock jumped more than 13% that day before paring gains as investors began to fear higher interest rates.

This year’s production will go a long way to determining how Tesla stock will perform in 2022. Wall Street expects about 1.4 million vehicle deliveries this year, up about 55% compared to 2021. Tesla may have to beat that number to keep its stock high.

The Shanghai factory appears ready to do its part.

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