Giga Shanghai

Tesla Giga Shanghai Strong Q4 Sales Could Be Tipping Point for 500K 2020 Deliveries

Tesla Giga Shanghai Strong Q4 Sales Could Be Tipping Point for 500K 2020 Deliveries

Photo: Reuters

Tesla's Giga Shanghai is impressive in its production and delivery performance, and is becoming strong support for the company's future growth, Wedbush said. The firm's analyst pointed out that continued strong demand for Tesla Model 3 in China, which is particularly noticeable in November, is "a linchpin" for the California-based manufacturer's bull thesis to develop further.

Giga Shanghai continues to ramp up production, and in November, the company registered 21,604 vehicles, according to CPCA data—a new record and about 78% more than the prior month. Another record in monthly sales makes Tesla the best-selling new energy vehicle in China.

Tesla's sales exceeded the combined sales of popular domestic competitors: BYD Han EV (7,482), Leading Ideal One (4,646), Xiaopeng P7 (2,732), and Weilai ES6 (2,386). Cumulative Model 3 sales in China exceeded 110,000 from January to November, and the vehicle has already secured its title as the leader in sales of new energy vehicles in 2020.

Tesla sold nearly 22,000 Model 3s in November, up from 12,000 Model 3s in October, which Wedbush analysts said is a very strong indication that demand in this key region is continuing to grow, and will pick up more momentum next year.

"We believe the company is tracking to another strong month of December in China which could be the tipping point to get Musk & Co. to hit/exceed its 500k annual delivery target," Wedbush analysts wrote.

The firm maintained its "neutral" rating on Tesla (NASDAQ: TSLA) stock and its price target of $560.

© 2020, Eva Fox. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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