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Monday June 17, 2024

Elon Musk's Tesla attains 14,000 China insurance registrations in 1st week of Nov

Elon Musk-owned Tesla starts shipping its latest Model 3 deliveries in China for the first time

By Web Desk
November 07, 2023
A handout photo provided on April 1, 2016 by Tesla Motors shows the car manufacturers new Model 3 which was unveiled on March 31. — AFP
A handout photo provided on April 1, 2016 by Tesla Motors shows the car manufacturer's new Model 3 which was unveiled on March 31. — AFP

China saw a rise in Tesla car insurance registrations last week as the updated Model 3's deliveries picked up and the company looked ready to increase the price of all Model Y car trims in China in the upcoming weeks, suggesting that third-quarter profit margins may have peaked.

Early on Tuesday, the shares of Elon Musk-owned Tesla dipped.

Data obtained by CnEVPost shows that the number of Tesla insurance registrations in China for the week ending November 5 was 14,000, an increase of about 30% above the previous week's total of 10,800, reported Investor's Business Daily.

For the first time since Tesla started shipping its latest Model 3 deliveries, these figures cover a whole week. The figures aren't yet split down to display registrations for Model 3 versus Model Y.

Even still, Tesla insurance registrations in China remain below Q3 levels, despite the company aiming for record Q4 numbers to meet its 2023 car delivery target of 1.8 million units.

According to figures issued by the China Passenger Car Association (CPCA) on Thursday, Tesla sold 72,115 cars built in China in October, up 0.57% from 71,704 units sold the previous year but down 2.6% from 74,073 in September.

As per the local media sources, some Tesla salesmen in China have verified that the lower-end Model Y trims' costs would shortly rise.

Tesla raised the price of its Model Y Performance trim by $1,920 at the end of October. This may indicate to investors that the most significant price reductions have been made and that profit margins will not go below Q3 levels.

Tesla's shares dropped 1.5% on Tuesday during trading, reaching 216.08. TSLA was down 0.3% to 219.27 on Monday.