Tesla (TSLA, Financials) got a nice lift from China in April, but the market is not yet totally sure the trend will continue.
The company’s Shanghai Gigafactory churned out 79,478 Model 3 and Model Y vehicles in April, up roughly 36% from a year ago. The figure covers vehicles sold in mainland China and exported to overseas markets.
That’s a solid monthly showing for Tesla in the world’s most competitive EV market. But the pressure isn’t going away. Chinese competitors like as BYD, Nio and Xpeng are launching new models, offering purchasers additional choices and making it difficult to sustain growth.
Tesla recently filed a new trademark for a Roadster badge, drawing attention to its long-delayed electric supercar. The Roadster was unveiled in 2017, however it has suffered multiple production delays.
The China sales bump is more than just the Roadster hype for investors. The fundamental issue is whether Tesla can continue to grow volumes and defend margins against intense local competition.
The next catalyst will be second quarter delivery data and any update on Roadster, robotaxi or Optimus timeframes.