Tesla stock climbs into record territory on rebound in Chinese sales
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Carmen Reinicke
Jun 9, 2020, 01:25 IST
Tesla Inc CEO Elon Musk poses with Tesla China-made Model 3 vehicle owners onstage during a delivery event at its Shanghai factory in China January 7, 2020.REUTERS/Aly Song
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Car sales in China rose in May for the first time in nearly a year, the China Passenger Car Association said Monday — and Tesla's were the best-selling new energy vehicles.
Shares of Tesla surged as much as 5.4% Monday, surpassing the company's February all-time high close.
The gains put Tesla on track for another record-high close Monday.
Shares of Tesla surged as much as 5.4% on Monday to $933.44 a share, surpassing the company's February all-time high close of $917.42.
Solid Tesla sales in China "is a linchpin to the bull thesis moving forward," Daniel Ives, an analyst at Wedbush, wrote in a Monday note.
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In April, registrations of Tesla vehicles in China slumped to 4,633 from a record 12,710 a month before, when the company resumed production at its Shanghai Gigafactory following a mandatory coronavirus-related shutdown. The Elon Musk-led electric vehicle company has lowered prices in China twice in the last two months, Bloomberg reported.
"Strong Model 3 demand out of China remains a ray of light for Tesla in a dark global macro and appears to be on a run rate to hit 100k unit deliveries in the first year out of the gates for Giga 3 which is driving some strength for Tesla as well as Model Y deliveries starting to ramp as well," said Ives.
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