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Tesla Orders Begin to Pick Up Again in China

By Donna Fuscaldo – Updated Jun 15, 2020 at 3:50PM

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The number of Tesla vehicles registered in China increased by 150% in May compared to April.

Tesla (TSLA -4.59%) is seeing demand in China increase, with more of its cars being registered in the country last month. 

Citing data from China Automotive Information Net, the state-backed agency, Reuters reports that 11,364 Tesla vehicles were registered in May, up 150% month over month. In April, 4,633 Tesla vehicles were registered in greater China, notes Reuters.

A EV car getting a charge at a charging station.

IMAGE SOURCE: GETTY IMAGES.

Meanwhile last week, the China Passenger Car Association released sales data showing Tesla sold 11,095 Model 3 Sedans during May and is leading in the electric vehicle market in China. Its lead may not last forever, though, as other vehicle manufacturers go after the EV market in China. Tesla was able to surpass local EV carmaker NIO and Daimler in terms of sales during May, notes Bloomberg. China is an important growth market for Tesla and other green car makers. 

The good news out of China wasn't enough to lift shares Monday as investors digested a pair of downgrades late last week by Goldman Sachs and Morgan Stanley, which both reduced their ratings on Tesla, pointing to a tech stock that they think is now too richly valued.

Morgan Stanley analyst Adam Jonas raised concerns about the China market, saying, "We believe any potential deterioration of relations with China could disproportionately impact Tesla vs. other stocks within our coverage." Jonas noted that other big car markets, including Ford and General Motors have raised their investments in electric vehicles as well. 

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$275.33 (-4.59%) $-13.26
Ford Motor Company Stock Quote
Ford Motor Company
F
$12.31 (-3.60%) $0.46
General Motors Company Stock Quote
General Motors Company
GM
$35.48 (-5.08%) $-1.90
Nio Inc. Stock Quote
Nio Inc.
NIO
$17.64 (-3.87%) $0.71

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