Tesla stock rebounds, announces Shanghai factory Q4 ramp up
Tesla (TSLA) shares rebounded on Monday along with the broader market as President Trump downplayed his recent tough talk on China. But Tesla is also making some waves in China.
As reported by Reuters, Tesla VP Tao Lin posted on Weibo that Tesla’s Shanghai gigafactory began its fourth quarter production ramp-up. Typically Q4 is Tesla’s biggest by deliveries, and Shanghai is its largest assembly facility by volume as it supports mainland China as well as other regions of the world.
Confirmation that production is ramping up at Tesla’s largest facility is a shot in the arm for the EV-maker as concerns grow over demand issues and more competition in places like Asia and greater Europe.
Tesla stock gained over 2% in early trade.
In China, Tesla sales in September were strong. Per CNEVPost, Tesla sold 71,525 vehicles in the month, its second-highest total this year behind only March’s 74,127 tally, according to the China Passenger Car Association (CPCA). September’s total was a 25% jump from August, though sales were down less than 1% year over year.
Tesla’s EV market share climbed slightly, CPCA said, to 8.66% from 8.33%. Powering some of those gains is the new Model YL, Tesla’s larger Model Y variant for the Chinese market.
The three row, six-seat Model YL launched in August with deliveries starting in early September. The new six-seater allows Tesla to compete in the larger EV SUV segment in China.
The boost in the YL could be seen in Tesla’s China-made Model Y wholesale figures (which include exports), which jumped 17% to 59K units in September.
Growing enthusiasm in China, strong Q3 delivery numbers, and the booming AI trade sent Tesla shares soaring over 30% last month. The question is whether Tesla can maintain that momentum heading into the fall, where in the US at least the loss of the federal EV tax credit will likely blunt sales.
As with Tesla, fundamentals don’t really matter when it comes to stock moves.
Tesla is the “OG Meme stock,” according to Barclay’s Dan Levy, and its legion of retail investors keep it that way.
“There is a very robust retail following driving it. In many ways, we’ve said the fundamentals just don’t matter. That’s why the stock trades at a nonsensical PE multiple,” Levy said on CNBC.” There are other technical factors driving it, including MAG 7 relative performance and option activity, which matter more than the typical fundamentals.”
Tesla will give investors another reason to buy (or sell) the stock when it reports earnings after the bell on October 22.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance