Tesla shares advanced more than 1.5% in premarket trading on Friday, following the release of September sales data showing a 5% year-over-year increase in China-made vehicle deliveries. The uptick comes after two consecutive sessions of declines, suggesting renewed optimism among investors.
The latest figures from the Shanghai factory indicate a continued recovery in demand for Tesla's electric vehicles. Deliveries of the Model 3 and Model Y produced in China reached 95,366 units last month, up from 90,812 in the same period a year earlier. This marks an improvement from August, when China-made EV sales grew 3.6% year over year.
The sales rebound is part of Tesla's broader effort to return to full-year growth after a challenging two-year stretch marked by intensifying competition. In 2024, the company experienced its first annual sales decline in over a decade, and it has yet to fully recover. Tesla also lost its position as the world's largest EV maker by volume to China's BYD, which has expanded aggressively, particularly in European markets.
Beyond China, Tesla has reported stronger registrations in several European countries. In September, registrations more than doubled in Portugal compared with the prior year, while France saw a 60% increase, Sweden 38%, and Spain 24.8%. Denmark and Norway also posted modest annual gains, despite their EV markets being largely saturated.
The company delivered 486,532 vehicles in the third quarter, comfortably exceeding Wall Street's estimate of roughly 461,000 deliveries. However, total deliveries were still approximately 2.1% lower than the same period last year, leaving investors to weigh the stronger-than-expected quarterly performance against the ongoing year-over-year decline in overall volume.
Looking ahead, Tesla's third-quarter earnings report, scheduled for October 21, will be a key catalyst for the stock. Wall Street expects revenue of about $27.91 billion and earnings per share of $0.45, according to Fiscal.ai. Investors will also focus on updates regarding Full Self-Driving (FSD) technology, robotaxi plans, and the Optimus humanoid robot project.
Goldman Sachs noted on Tuesday that these forward-looking initiatives could become more influential to Tesla's stock performance than near-term earnings, underscoring the market's attention on the company's long-term ambitions beyond vehicle sales.
Despite the recent uptick, Tesla shares remain nearly 25% below their peak of $498.82, reflecting the challenges the company faces in regaining its former growth trajectory.
This article is for informational purposes only and does not constitute financial advice.
