Anytime a company improves its operations in a major (and highly competitive) market, it can rejoice. This was the case on Thursday with the pioneer of electric vehicles (EV). You’re here (NASDAQ:TSLA)which revealed that it was bringing its product to market faster in a key foreign country.
As a result, investors traded for the company’s stock to rise by almost 5%, a figure much higher than that of S&P500 the index rose 0.3% on the day.
Waiting times for Tesla in China are decreasing
As reported by stock site StreetInsider.com, Tesla’s Chinese website has updated its expected delivery times for its popular Model 3 sedan and Model Y crossover. Ahead of these updates, Tesla updated its schedules were last projected in November.
For the Long Range version of the old model, the Electric vehicle company expects to deliver it within two to six weeks. This is well down from the previous forecast period of six to nine weeks. As for the Model Y Long Range, enthusiastic customers now just need to take it easy for the same two to six weeks. Previously, they had to remain stable for six to eight weeks.
China, given its size and ever-growing economy, is a key market for almost all types of businesses. This goes double for electric vehicle makers like Tesla, as the government continues to promote greener vehicle solutions given historically high levels of air pollution.
The country is not an easy market
This is why Tesla has built and operates one of its “gigafactories” in the country, particularly in the Shanghai region. While China is a country with vast potential, it also poses a challenge for a relatively high-end foreign manufacturer. The government clearly favors domestic automakers like Nio (NYSE:NIO), and Tesla’s pricing may put its products out of reach for many Chinese consumers. Any strengthening of the company’s competitive advantage in this area is welcome.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Nio and Tesla. The Motley Fool has a disclosure policy.
Why Tesla Stock Triumphed Today was originally published by The Motley Fool
