The EV maker saw its China sales rise to around 50% of global vehicle sales.
TSLA: Weekly Chart
The price of Tesla stock has pushed through resistance levels and now targets the $314 level.
Tesla China reached wholesale deliveries of 247,217 vehicles in the April-June quarter, 120% higher than a year ago, according to data from the China Passenger Car Association (CPCA). A bumper month was also seen in June, with deliveries of 93,680 vehicles, up 19% from the same period a year ago.
Tesla now trails only BYD in China sales after embarking on a host of price cuts globally this year. Tesla will now report second-quarter earnings on July 19, and analysts will be interested in its profitability after price margins slumped to 2020 levels with the price reductions.
China’s electric vehicle (EV) market continued to grow in the second quarter, thanks to price cuts and government subsidies, the CPCA said. That led to a record high for sales in the country in June and powered Tesla to global deliveries of over 466,000 vehicles worldwide.
BYD was still the leader in China, with April to June sales of over 700,000 new energy vehicles, almost double that of the first quarter last year. BYD sold 352,163 battery-powered vehicles in the second quarter, beating Tesla.
“This was a massive delivery beat and will send the Tesla bears back into hibernation mode. The price cuts were a smart poker move for Tesla and are paying major dividends in the field, especially in the China market. This was a trophy case quarter for Musk & Co.,” analyst Dan Ives said in a tweet.
