You’re here (TSLA) sold a record number of Chinese-made vehicles in November, according to data released Monday by the electric vehicle giant. However, multiple reports on Monday said Tesla also plans to cut electric vehicle production in China as demand appears to be weakening. Tesla stock fell on Monday.
The electric vehicle giant on Monday refuted the reports, calling claims that it was cutting production in China as false.
The US-based global electric vehicle company sold 100,291 Chinese-made electric vehicles in November. This represents an increase of about 90% over last year and a gain of 40% over the 71,704 Tesla electric vehicles sold in October.
Between January 2022 and November 2022, Tesla sold 655,069 Chinese-made vehicles, up 63% year-over-year.
However, despite the increases, reports emerged on Monday that Tesla would cut production at its Shanghai factory by up to 20% starting this week.
The outlook for demand in China has become less clear, even with lower prices in late October and various other incentives as the company ramps up production to record highs. Tesla also exports a large number of Chinese-made electric vehicles, which are produced at its Shanghai factory. 71,704 Tesla Shanghai electric vehicles were sold in October, including 54,504 exported and 17,200 vehicles delivered in China.
Tesla’s factory in Shanghai underwent upgrades last summer that were expected to increase production capacity to around 1 million units a year. However, Reuters reported in late September that Tesla plans to keep production at the modernized Shanghai factory running at around 93% capacity until the end of the year.
Tesla stock fell 6.4% in market trading on Monday.
Tesla Stock: Aging Inventory
The electric vehicle giant produces four electric vehicles: the Model S luxury sedan and the Model X SUV as well as the Model 3 sedan and the Model Y crossover.
In China, Tesla only sells the Model 3 and Model Y. Meanwhile, Chinese EV rivals BYD (WILL BE), Li-Auto (LI) and Nio (NIO) are all seeing increased sales as they roll out new model lines.
Other Tesla models – the Roadster, Semi and Cybertruck (an EV pickup truck) – have been repeatedly pushed back. Musk says the Cybertruck is on track for “early” production in mid-2023. Reuters reported that mass production would begin in late 2023.
Tesla Semi Bulls
The conflicting news for Tesla in China, record sales and reports of a production cut, follows the first Tesla Semi deliveries on Thursday.
The long-awaited eighteen-wheel electric long-haul freighter is capable of about 500 miles per charge on 82,000 pounds of cargo, according to Tesla.
The company also claims that the truck can accelerate from zero to 100 km/h in 20 seconds and recharge up to 70 percent of its range in half an hour.
The first Tesla Semi trucks go PepsiCo (PEP) in California. Pepsi placed its order for 100 electric vehicles when the Semi was first announced in 2017.
CFRA senior equity analyst Garrett Nelson wrote on Friday that his company expects strong demand for the Tesla Semi.
“We are optimistic about demand for the Semi as TSLA moves forward with increasing production of the truck to 50,000 units in 2024, seeing considerable appetite from larger companies looking to reduce their footprint. carbon,” Nelson wrote.
Semi-truck deliveries could mark a win in a year in which Tesla shares have been large losers. Its share price has lost about 50% in 2022, returning to levels close to when the company joined the S&P 500.
The pullback came as analysts suggest demand for Tesla electric vehicles in China has weakened. Musk’s recent purchase of Twitter also appears to have had a negative impact on Tesla stock.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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