Tesla (NASDAQ: TSLA) shares closed up 5.5% on Friday, marking an end to its longest losing streak since 2021. The surge in share prices followed impressive delivery figures of China-made vehicles in April, as reported by the China Passenger Car Association.
Despite a 14.7% decrease in deliveries compared to March, Tesla managed to deliver 75,842 vehicles in April, a significant increase from the same period last year when they could only deliver 1,512 vehicles due to COVID-19 lockdowns and production challenges.
The impressive delivery figures suggest that Tesla’s production in China has bounced back from the pandemic-related setbacks and is on a steady growth trajectory.
Tesla, the electric-vehicle giant, has been facing pressure from investors since its disappointing earnings release last month. The major cause of concern has been the margin pressure, which stemmed from a series of price cuts in Q1 and Q2. However, Tesla has now taken a step to counter this issue by raising the prices of some of its models.
Recently, Tesla reversed some of the price cuts by slightly raising the prices of the Model Y and Model 3 in China, the US, Canada, and Japan. But, in a surprising move, Tesla has increased the prices of its most expensive cars – the Model X and Model S – in China by 19,000 yuan, or $2,751 each.
This move has led to speculation that Tesla is trying to place its luxury offerings further above its Model 3 and Model Y cars on the mainland. With this price hike, Tesla is hoping to shore up its margins while catering to the demands of Chinese consumers who have a strong appetite for luxury cars.
Shares of TSLA may also have been benefiting from a broader market trend that is seeing a risk-on rally after the release of positive April jobs reports. The Nasdaq, which is known for its heavy weighting of technology stocks, closed with an increase of more than 2%, while the S&P 500 index rose 1.85% at the end of the day. This indicates that investors are confident in the current economic conditions and are optimistic about the future prospects of technology companies, including Tesla.
Larry Norris is a journalism graduate with keen interest in covering news – specifically top trending. He has as a keen eye for technologies and has predicted quite a few successful startups over the last couple of years. Larry goal with this website is to report accurately on all kinds of stock news, and have a great deal of passion for technical and active reporting. Larry is diligent and proactive when it comes to news reporting.
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