Tesla breaks above key $800 resistance level after posting strong China sales growth in September
- Shares of Tesla traded above the key $800 resistance level on Tuesday after the EV maker posted strong September sales growth in China.
- Tesla sold 56,606 vehicles in China last month, representing 27% month-over-month growth.
- The growth for Tesla came even as China auto sales slumped 17% in September.
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Tesla rose 2% to clear its key $800 resistance level on Tuesday after the company announced significant sales growth in China for the month of September. sh_cad_3
Tesla sold 56,006 China-made vehicles, representing month-over-month growth of 27% and the highest month of China sales since production in its Shanghai plant started in 2019. sh_cad_4
The growth from Tesla is impressive as data from the China Passenger Car Association showed overall vehicle sales drop 17% in September to 1.58 million. Of the 56,000 China-made vehicles sold in September, Tesla exported 3,853 of them. sh_cad_5
The drop in September car sales in China wasn’t much of a surprise given the ongoing semiconductor shortage and recent regulations targeting power consumption in the country. And Tesla’s third-quarter auto sales released earlier this month hinted at continued strength for the auto-maker, with the company on track to near 1 million in annual auto sales. sh_cad_6
Wedbush analyst Dan Ives said the China sales data means recent dark clouds hovering over Tesla in recent months are beginning to move into the rear view mirror. sh_cad_7
“Selling 50k+ in the month for the key China region speaks to huge trajectory that highlights our bull China thesis for Tesla going into the next few years,” Ives said in a Tuesday note, adding that “Tesla continues to dominate market share.” sh_cad_8
Tesla’s Tuesday surge brought the stock to its highest level in eight months. A consecutive daily close above the $800 resistance level would signal that a risk-on appetite is building in shares of Tesla, with a re-test of its prior high likely. sh_cad_9
Tesla topped out at $900.40 in late January, which represents potential upside of 12% from current levels. Since hitting its record high in January, Tesla fell as much as 40% before consolidating sideways as investors grappled with the chip shortage and production concerns. Shares of Tesla are up about 12% year-to-date. sh_cad_10
Source: Tesla breaks above key $800 resistance level after posting strong China sales growth in September