Tesla (TSLACEO Elon Musk arrived in Beijing on Tuesday, where he met with the Chinese foreign minister, in his first visit to China since 2020. Meanwhile, Tesla stock rose on Tuesday after a big advance last week.
Musk met Chinese Foreign Minister Chen Gang in Beijing on Tuesday, according to a statement from the Chinese ministry. Musk reportedly told Chen that Tesla is ready to expand business operations in China. The Chinese Ministry of Foreign Affairs told Tesla CEO that China is “committed to creating a market-oriented, rule-of-law-based and internationalized international business environment,” according to the statement.
Tesla stock advanced 4% to 200.85 on Tuesday during market trading, indicating a move above key levels. On Friday, the TSLA Index jumped 4.7%, to 193.17.
Musk’s visit on Tuesday to Beijing was his first to China since early 2020, before the start of the Covid pandemic. The trip comes as competition for electric cars has exploded in China with uncertainty over Tesla’s demand. Tesla has provided no guidance update on plans to ramp up production by 450,000 vehicles annually at its Shanghai plant. However, Tesla executives said in April that there are plans to build a Megapack factory in Shanghai to produce energy storage products.
Tesla Shanghai has cut production of the Model 3 recently, according to various reports. That could be in preparation for a revamped Model 3.
Meanwhile, Tesla Canada is cutting Model 3 inventory, just weeks after Shanghai began exporting there, displacing US exports.
Tesla sold 12,800 units in China last week, up from 10,200 the previous week, according to CnEVpost, citing various sources. In the first two weeks of May, Tesla’s deliveries were 5,928 and 9,990, respectively. The rise in registrations could reflect an increase in demand or an increase in domestic supply with Shanghai’s exports in the second quarter significantly increasing. For the month, Tesla sold 38,918 Chinese-made vehicles.
In 2022, Tesla Shanghai produced 33,544 vehicles in May, with 22,340 of those vehicles exported.
Tesla stock jumped 7.2% to 193.17 last week, riding on Friday’s heavy 4.7% volume. TSLA formed a cup base with 207.89 buy points. The pattern can also be read as a double-bottom rule, but the point of purchase remains the same.
The stock has been consolidating below the 200-day line all the time. However, the 200 day line is now at the 200 level, below the buy point. A breakout would be valid, with a decisive drop below the 200-day line as the place to exit.
Tesla stock is indicating a move above the 200-day line and the 200 level.
Before Tuesday’s trading, the electric vehicle giant rose 17.6% in May and advanced 80% from its January low. On May 19, the TSLA Index advanced above the 50-day moving average, printing at 181.85.
The stock ranks fifth in IBD Automotive Groupwith Ferrari (race) Speed limiter at No. 1. TSLA has a composite rating of 71 out of 99. The stock also has a 33 relative strength rating. The EPS rating for Tesla stock is 93 out of 99.
Please follow Kit Norton on Twitter @employee for more coverage.
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