Tesla stock rallies after data showing sales in China rebounded in May

Dow Jones2021-06-08

MW Tesla stock rallies after data showing sales in China rebounded in May

Shares of Tesla Inc. $(TSLA)$ rallied 2.9% in premarket trading Tuesday, putting them on track for a third-straight gain, after data out of China showed a rebound in the electric vehicle maker's sales last month. The China Passenger Car Association said overnight that sales of passenger cars in May rose 1% from a year ago to 1.62 million vehicles, while sales of EVs soared 177% to 185,000. Tesla sold 21,936 EVs made in Shanghai in China in May in China well, as demand rebounded well ahead of expectations. "We believe starting in the month of June Tesla will be on a 300k run-rate for deliveries in China as the growth story appears back on track in this linchpin region despite the skeptics and haters piling on from the month of April, which we continue to view as an anomaly rather than the norm," Ives wrote in a note to clients. He affirmed his outperform rating and $1,000 stock price target. Tesla's stock has gained 7.5% over the past three months through Monday, but has lost 14.3% year to date, while the S&P 500 has climbed 10.6% the past three months and advanced 12.5% this year.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

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June 08, 2021 08:15 ET (12:15 GMT)

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