Tesla shares hit record close price


Tesla shares hit a record close price of $ 949.92 on Monday after opening at $ 919, partly in response to May data on electric vehicle sales outside China.According to the China Passenger Car Association, Tesla sold 11,095 of its Shanghai-made Model 3 electric sedans to customers based in China in May, Reuters reported.

Overall, Tesla vehicle sales in China increased 205% from a decrease in April attributed to the effects of Covid-19 on consumers and businesses in China, including its own. Tesla sold less than 4,000 vehicles in China in April.

The electric vehicle maker hit its record high closing price of $ 917.42 in February 2019.

In 2019, Tesla received significant government support to set up its Shanghai auto plant. For example, local banks invested $ 1.6 billion in the manufacturing plant, and local authorities helped Tesla quickly obtain permits to acquire the land, while China authorized Tesla to operate the factory independently, without a local joint venture.

This year, Shanghai was quick to help Elon Musk reopen the company’s factory in China after Covid-19 hit the region, including donations of personal protective equipment, and more.

In response to May sales figures from China, Dan Ives of Tesb’s Bull Wedbush Securities wrote: “We think China’s growth is worth $ 300 per share for Tesla, as this penetration of EVs is expected increase significantly over the next few months. »12 to 18 months in a more standardized context. We are maintaining our neutral rating and our price target of $ 800 with our bull bull target of $ 1,350 ”

JL Warren Capital – a China-based equity research company in New York – said sales of the Model 3 made in China were driven by discounts and subsidies.

In a note to investors last week, JL Warren Capital researchers noted that there had been a shift in demand from long-range vehicles to short-range vehicles, driven by price changes and available subsidies for buyers in China:

“The sharp drop in the number of LR [long-range] orders in May are the result of a price drop of ~ 11% from May 1 for the M3 SR [short-range]. Due to Tesla’s fanciful price changes, Chinese consumers are delaying purchases in hopes of further price cuts for LR [long-range] after July because the model will no longer be eligible for government funding. ”


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