- Tesla extended its 4-day win streak to 13% on Monday amid strong EV sales data from its Chinese competitors.
- The sales results from Nio, XPeng, and Li Auto demonstrated continued demand for EVs from Chinese consumers.
- Shares of Tesla were up as much as 5% on Monday and traded above the $700 level for the first time since late April.
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Shares of Tesla jumped as much as 5% on Monday, helping it extend a four-day win streak to 13% as strong electric vehicle sales from its Chinese competitors demonstrates continued demand in the sector.
Nio said it delivered 7,931 vehicles in July, representing year-over-year growth of 125%. Meanwhile, Li Auto and XPeng reported record July deliveries of 8,589 and 8,040 vehicles, respectively, representing year-over-year growth of 251% and 228%.
The strong delivery figures bode well for Tesla, which has staked a bulk of its business on the region as it quickly transitions to electric vehicles. Tesla’s Shanghai Gigafactory produces the Model Y and Model 3 for the Asia-Pacific market, and while it’s still partially under construction, the factory has capacity to build nearly 500,000 vehicles annually.
Investors seem to be shaking off concerns of increased regulatory actions from Beijing as EV sales prove too strong to quell. Tesla’s China sales represented 30% of its total sales in second quarter. Meanwhile, China’s Shanghai factory produced 45% of Tesla’s total production for the three months ended June 30, according to data cited by Barrons,
Tesla’s 5% surge on Monday helped the stock trade above the $700 level for the first time since late April.