Tesla Inc. (NASDAQ: TSLA) shares climbed 3% to over $400 on Thursday, buoyed by a 36% year-on-year increase in China-made vehicle sales in April. The company delivered 79,478 Model 3 and Model Y vehicles from its Shanghai plant, according to the China Passenger Car Association, marking the sixth consecutive month of gains despite a 7.2% month-over-month decline from March. The figures include exports to Europe and other markets.
The strong China performance helped offset a mixed recovery in Europe, where registrations more than doubled in Sweden, Denmark, and France, but fell sharply in Norway, Spain, and Portugal. Tesla's European sales have rebounded this year after two consecutive annual declines, partly driven by higher fuel costs amid the US-Iran conflict.
However, challenges remain. Tesla's Full Self-Driving approval in China faces delays, with CFO Vaibhav Taneja now guiding for a Q3 approval, later than the earlier Q1 target. In Europe, regulatory scepticism persists. To counter domestic Chinese rivals, Tesla is preparing a cheaper SUV model. Despite the stock bounce, Tesla shares are still down about 6% year-to-date, with long-term sentiment tied to progress in AI and autonomous driving initiatives like the recently launched Austin robotaxi service, whose expansion has been slower than expected.
