Tesla share price: Why did Tesla shares jump 70% this year?

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Tesla China car sales

Tesla share price: What's going on with the stock?

Tesla share prices have soared about 70% in the three months since the beginning of 2023 to April 6th, taking support from a continued rise in domestic and international car demand.

Latest data from the China Passenger Car Association (CPCA) showed Tesla’s China specific sales for the month of March jumped 35% to 88,869 units, supporting the share price jump. 

Tesla shares have been on a constant uptrend over the past few weeks after Moody’s investor service upgraded shares of the company to an investment grade for the first time ever on record. 

Furthermore, Tesla and other technology stocks have proved to be the best performing set of stocks in 2023, with the Nasdaq 100 up about 20% so far this year. Investors expect the US central bank to take a pause from interest rate hikes or atleast make smaller hikes this year as the US economy suffers due to incessant interest rate hikes. 

Tesla share price: Historical price performance

Tesla share price: Tesla's China-made car sales jump, but is it enough?

According to data from the China Passenger Car Association (CPCA), Tesla sold 88,869 electric vehicles (EVs) made in China in March, which includes both domestic sales and exports. 

This is a 35.0% increase from the previous year and a 19.4% increase from February, when the company sold 74,402 China-made Model 3 and Model Y electric cars.

In comparison, BYD, which at the moment is Tesla’s biggest competitor and the market leader in EVs in China sold 206,089 units last month. BYD’s Dynasty and Ocean series of EVs and hybrids, which is a 97.5% increase from the previous year.

Tesla's global vehicle deliveries in the January to March period reached a record high, but quarter-on-quarter sales growth was relatively low, despite price cuts, due to increasing competition and a poor economic outlook.

China Merchants Bank International (CMBI) data showed that Tesla's retail sales in China for the quarter ended March 2023 totaled 122,801 units which somewhat failed to impress investors. 

Tesla shares are expected to end the week ended April 6, 11% lower. 

Tesla share price: Analyst View

  • Brokerage Berenberg has a “hold” rating on the stock with a share price target of $210.
  • Brokerage Needham has a “hold” rating on the stock with a share price target of $196.
  • Guggenheim Securities has a “sell” rating on the stock with a share price target of $105.