Tesla Stock Jumps as Shanghai Deliveries Rise for 11th Straight Month

This article first appeared on GuruFocus.

Tesla (TSLA) shares climbed 3% in morning trading Friday after fresh data showed higher sales of electric vehicles manufactured in China, while demand in Europe continued to recover.

The company delivered 95,366 Model 3 and Model Y vehicles produced at its Shanghai factory in September, a 5% increase from 90,812 units a year earlier, according to China Passenger Car Association data released Friday. The latest increase extended the annual growth streak to 11 months.

Shanghai-built vehicle sales also advanced 13.7% year over year in the third quarter. However, Tesla’s worldwide deliveries fell 2.1% from the same period last year, when the automaker recorded a quarterly delivery record. Global deliveries nevertheless exceeded analysts’ expectations.

Tesla is offering discounts in China through October to support demand amid intensifying competition. Selected Model Y versions qualify for a 7,000-yuan discount on final payments, while Model 3 buyers can receive 5,000 yuan off.

Investors will watch whether stronger regional sales can translate into sustained worldwide delivery growth as Tesla navigates pricing pressure and competition in the electric vehicle market.