Representing a 13.6% year-over-year rise, Tesla’s (TSLA, Financials) weekly insurance registrations for cars in China rose 5.7% to 18,600 units from Dec. 2329. Based on corporate data, this trend underlines robust demand in China whereas performance in the United States and Europe is really poor.
Focused on manufacturing Megapack batteries, Tesla’s energy storage gigafactory in Shanghai started trial production and expects early next year full-scale operations. This development fits well with Tesla’s larger plan to grow its energy company and cut dependency on vehicle sales.
Parallel with this, Tesla revealed software patches for 77,650 Model 3 and Model Y cars to solve tire pressure display problems, which the market regulator of China categorized as a recall. Driver airbag issues forced the firm to additionally recall 63 imported Model S and Model X cars. These recalls highlight Tesla’s continuous attempts to solve quality and safety concerns throughout its worldwide fleet.
As Tesla tries to maintain its year-over-year growth trajectory, experts predict it will show record-breaking fourth-quarter deliveries, estimated between 498,000 and 515,000 units. Investor mood depends heavily on the next delivery report, especially as Tesla’s price has displayed volatility even with recent hope for developments in autonomous driving technology.
First seen separately on UK roads, Tesla’s Cybertruck is also making waves. But the design of the car now lacks legal conformity in the UK, hence it needs changes before it may be marketed there. Said to be trying to make the car roadworthy are local customizers.
This article first appeared on GuruFocus.
