Electric carmaker Tesla, Inc.'s (TSLA) stock price went into a funk after it reported earnings last week. At the start of this week, however, it is accelerating. Toward the close of trading, the Palo Alto, California-based company's stock was changing hands at $714, an increase of nearly 4% since the start of trading. Many reasons are being put forward to explain the jump in Tesla's shares.
- Electric car maker Tesla's stock rose by nearly 4% in trading today after positive news about sales in China's electrical vehicle (EV) market, which is the world's biggest EV market.
- Sales for all three U.S.-listed Chinese electric vehicle companies rose from a year ago.
- China comprised 98% of Tesla's deliveries in its latest quarter, and the company is taking major steps to ensure that it is successful there.
The Rising Tide of China's Electric Vehicle Market
China figures prominently in the most important reason behind the gains for Tesla stock. A CNBC report today is testimony to the country's growing EV market.1 For example, NIO Inc. (NIO) reported a jump of almost 125% in sales from the same time period a year ago. Its stock is up by nearly 3% from the day's start and by almost 19% on a weekly basis. NIO was the leader in China's EV market but dropped to third place. According to Citi analyst Jeff Chung, Tesla's price cut for its Model Y was responsible for NIO's fall.2
Other Chinese car makers are also on a roll. XPeng Inc. (XPEV) had sales that skyrocketed by 228%, while Li...
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