Thursday, June 8Welcome

Rumors about Tesla production are backed up by Chinese car sales data – Piper Sandler (TSLA)

Tesla Auto Factory, Shanghai

sky blue

Piper Sandler told clients that car sales in China in November implied a slowdown in car sales for the year, which explained rumors of a production cutback by Tesla.Nasdaq: TSLA) on the market.

Equity analyst Alexander Potter told clients COVID restrictions are evident in slide sales for the month. Tesla, in particular, made a big profit year-on-year, Spread of NEVs In the region, the Austin-based automaker is still seeing declining sales. double digit percentageOverall retail vehicle sales fell 9.5% year-on-year, slowing for the first time since spring lockdowns.

“November results show annual sales of just 17.2 million vehicles. It has been nine years since China’s auto market has experienced such a low annual rate (due to the impact of COVID lockdowns). ),” explained Potter. “December is typically the strongest month, accounting for 10.9% of annual sales, so widespread production cuts may be necessary if the recent downward trend is not addressed by easing COVID restrictions. there is potential.”

He added that the year-on-year decline in retail sales was the first in both October and November, two of the strongest months of the year since 2008. It makes sense, and it might be a smart move for Tesla to pursue.

Read more about why Potter doesn’t see competition as a driver of Tesla’s curtailed production.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *