Tesla shares shoot up after beating sharp slowdown in China

Tesla shares hit a seven-month high Tuesday after the carmaker defied a sharp slowdown in China to record its best-ever September sales tally from the world’s biggest car market.

Tesla sold 56,006 of its Chinamade vehicles in that market last month, data from the China Passenger Car Association indicated Tuesday, a 27 per cent increase from August and the highest total since the opening of its Shanghai gigafactory in 2019. The figures contrasted sharply to a near 20 per cent decline in overall China car sales, the fifth consecutive month of declines, as the nation’s power crisis, and the ongoing semiconductor shortage, lingers over the industry.

Tesla’s September China sales add the final piece of information to its record third quarter deliveries, which rose 73.2 per cent from last year to 241,300 amid call from founder and CEO Elon Musk to “go hardcore” in the face of chip shortages and plant closures.

Tesla shares were marked 1.74 per cent higher at Tuesday’s closing to change hands at $805.72 (U.S.) each, after hitting a seven-month high of $810.25 earlier in the session.

Short interest in Tesla remains elevated ahead of its third quarter earnings on Oct. 20, with data from S3 Partners pegging bets against Tesla at around $21 billion, or 3.34 per cent of the outstanding float.