Actions of You’re here (NASDAQ:TSLA) have been on the comeback trail recently, and that continued on the first trading day of July. Shares of the leading electric vehicle (EV) maker were up 5.5% as of 11:10 a.m. ET Monday morning. The stock is now up about 18% over the past month.
Today’s jump comes just a day before Tesla releases its electric vehicle delivery data for the second quarter. As estimates trend lower, delivery reports from Chinese electric vehicle makers today have investors feeling more optimistic about what the U.S. company will say.
China’s important electric vehicle market
The Chinese electric vehicle market is crucial for Tesla, whose most productive factory is in Shanghai. Today, several Chinese electric vehicle manufacturers reported strong deliveries for June and the second quarter. That could bode well for what Tesla has to share tomorrow.
Nio, Li Auto, XPengand the biggest BYD all showed year-on-year growth Battery Electric Vehicle (BEV) Sales for the quarter. The period appears to have ended on a positive note, as Nio delivered a monthly record of 21,209 vehicles in June. That’s nearly double what it delivered in June 2023.
Many EV watchers have been keeping a close eye on the larger BYD, whose BEV volume is more in line with Tesla’s. BYD sold more than 426,000 fully electric vehicles in the second quarter, up about 21% year over year.
Tesla analysts have lowered their sales estimates for the second quarter, with the most recent projections calling for an average of about 420,000 electric vehicles. That would be down from 466,000 vehicles delivered in the same period a year earlier. It would also be the second quarter in which BYD surpasses Tesla to become the world’s largest seller of electric vehicles.
With the apparent recovery of China’s electric vehicle market, Tesla could beat estimates. Even after this data is released, shareholders will want to continue paying attention to what’s happening. Tesla talks about profit margin when it releases its full second-quarter financial report. If sales in China come from lower prices, the stock rally could be short-lived.
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Howard Smith holds positions in BYD Company, Nio, Tesla and XPeng. The Motley Fool holds positions and recommends BYD Company, Nio and Tesla. The Mad Motley has a disclosure policy.
Why Tesla Stock Outpaced Second Quarter Deliveries was originally published by The Motley Fool
