Elon Musk-owned Tesla’s China registrations jump on strong Model 3 deliveries

A Tesla showroom.—Reuters/File
A Tesla showroom.—Reuters/File

Tesla has seen a recent surge in vehicle insurance registrations in China, which coincides with continued deliveries of the revised Model 3.

This positive trend comes as Tesla hinted at possible price increases for all Model Y vehicle trims in China, suggesting that profit margins may be stable.

However, these price adjustments may signal the end of significant price cutting, indicating that margins will remain above levels experienced in the third quarter.

As of the week ending November 5, Tesla’s insurance registrations in China totaled 14,000, representing an increase of nearly 30% compared to the previous week’s 10,800 registrations.

These figures reflect a full week of registration data following the launch of Tesla’s new Model 3. However, the data does not differentiate between Model 3 and Model Y registrations.

Despite this positive development, Tesla’s insurance registrations in China are still below the levels seen in the third quarter. Tesla aims to achieve record deliveries in the fourth quarter to reach its 2023 target of 1.8 million vehicle deliveries.

In October, Tesla sold 72,115 vehicles in China, a slight increase from last year but a decrease from September.

Additionally, local media reports suggest that prices for low-end Model Y trims will soon increase in China. In late October, Tesla raised prices for the Model Y Performance trim, and this latest adjustment may signal that the significant price cutting is over, with profit margins expected to remain stable.

As of market action on Tuesday, Tesla stock was down 1.5%, trading at $216.08. A day earlier, the stock was down a modest 0.3%, closing at $219.27.

Tesla is on a mission to achieve record deliveries in the fourth quarter, aiming to reach 1.8 million vehicle deliveries by the end of the year. There have been slight adjustments to analysts’ estimates since October, with the consensus estimate for 2023 vehicle deliveries at 1.79 million.

Despite some challenges and caution expressed by CEO Elon Musk during the third quarter earnings call, Tesla is performing well in the stock market, with shares up about 78% since the beginning of 2023.

Additionally, Tesla is preparing to begin initial deliveries of the Cybertruck in late November.

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