It’s good news for Tesla that sales have gone up in China, but not enough for shares to break out of their recent range.
The Chinese Passenger Car Association says that in May, Tesla delivered 72,573 cars from its plant in Shanghai. Tesla doesn’t say how many cars are sold each month or in each region.
Exports are part of that number. Most of the time, local sales start later in the month.
The number for May is almost 17% higher than the April number. The number is down about 7% year over year, but it is getting better over time. As of May, Tesla had sold about 356,000 cars from its Shanghai plant this year, which is about 7% less than the same time last year.
The trend in China is the same as the trend in the rest of the world. Tesla sent out about 387k cars in the first quarter of 2024, which is about 9% less than the same time last year. Wall Street thinks that about 450,000 units will be sold in the second quarter, which is about 3% less than the same time last year.
Sales that are going down have made investors less optimistic. Tesla stock had lost about 30% so far this year before trading on Wednesday. Stocks are up 0.4% so far on Wednesday morning, and S&P 500 and Nasdaq Composite futures are up 0.2% and 0.5%, respectively.
Since the company reported better-than-expected first-quarter earnings in late April, Tesla shares have stayed between their 50-day and 100-day moving averages. Uber’s stock hit a 52-week low of $138.80 on April 22, just before earnings. It had already lost more than 40% of its value in the past year.
Investors are looking forward to what comes next. The annual meeting of Tesla shareholders is on June 13. It will be a chance to hear from staff. In July, the company will report earnings and deliveries for the second quarter. In August, the company will hold an event called Robotaxi. Tesla should show off the progress they’ve made in getting cars to drive themselves at the event.
In a report released Tuesday, Piper Sandler technical analyst Craig Johnson said that the stock chart looks better than it has recently. He also said that he could see shares moving towards $190.
Johnson isn’t saying anything important about Tesla. To figure out where traders and investors are most likely to buy and sell shares, he looks at stock charts.
Tech experts can also help investors guess whether stock prices will go up or down after important events like the annual meeting on June 13.
People who own shares in Tesla have a choice at the meeting. Their vote is on whether to bring back CEO Elon Musk’s 2018 pay package, which was worth $56 billion at the time. In January, a judge in Delaware threw out the package.
If people vote “yes,” the question of Musk’s pay will be settled for now. If people vote “no,” Tesla stock will be more volatile.
