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Tesla's China Registrations Sink in July

By Lou Whiteman – Aug 17, 2020 at 8:54AM

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The company faced a tough comparison after a record-setting June.

Registrations of China-built vehicles from Tesla (TSLA -4.59%) fell 24% in July compared with June, a fresh sign of the growing threat posed by rapidly increasing competition in that market.

There were 11,456 Shanghai-built Teslas registered in China in June, down from 14,976 in June. The comparison was a tough one, as June was a record month for Tesla in China, but investors were hoping for continued momentum.

A Tesla Model Y

Image source: Tesla.

Tesla does not report monthly sales numbers in China; the registration data is from the China Automotive Information Net and was first reported by Bloomberg.

Chinese electric vehicle maker NIO saw registrations quadruple to 3,533 in July, and European carmakers BMW and Daimler have electric vehicles planned for the country.

Tesla earlier this year cut vehicle prices in both China and the United States, which was seen at the time as a response to growing competition from established automakers and start-ups.

Tesla shareholders also got some bullish news on Monday morning. Wedbush Securities analyst Daniel Ives raised his price target for the stock to $1,900, from $1,800, on hope that Tesla's price cutting will stimulate increased demand in the U.S. and China.

Wedbush's new target is 15% above Friday's close, but Ives maintained his neutral rating on the stock.

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

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