Tesla’s vehicle insurance registrations in China have seen a recent increase, coinciding with the continued deliveries of the revamped Model 3.
This positive trend comes as Tesla hints at potential price increases for all Model Y vehicle trims in China, suggesting that profit margins may have stabilised.
However, these price adjustments could signal the end of significant price reductions, indicating that margins will remain above the levels experienced in the third quarter.
As of the week ending November 5, Tesla’s insurance registrations in China totalled 14,000, representing a nearly 30% increase compared to the previous week’s 10,800 registrations.
These figures reflect a full week of registration data following the launch of Tesla’s new Model 3. However, the data does not distinguish between Model 3 and Model Y registrations.
Despite this positive development, Tesla’s insurance registrations in China are still below the levels seen in the third quarter. Tesla aims to achieve record deliveries in the fourth quarter to reach its 2023 target of 1.8 million vehicle deliveries.
In October, Tesla sold 72,115 vehicles in China, a slight increase from the previous year but a decrease from September.
Moreover, reports from local media suggest that prices for lower-end Model Y trims will soon rise in China. In late October, Tesla increased prices for the Model Y Performance trim, and this latest adjustment may indicate that significant price cuts have come to an end, with profit margins expected to remain stable.
As of market action on Tuesday, Tesla stock showed a 1.5% decrease, trading at $216.08. The day before, the stock had a slight decline of 0.3%, closing at $219.27.
Tesla is on a mission to achieve record deliveries in the fourth quarter, with the goal of reaching 1.8 million vehicle deliveries by year-end. Analyst projections have adjusted slightly since October, with the consensus estimate for 2023 vehicle deliveries standing at 1.79 million.
Despite some challenges and caution expressed by CEO Elon Musk during the third-quarter earnings call, Tesla has been performing well in the stock market, with shares gaining approximately 78% since the beginning of 2023.
Additionally, Tesla is preparing to start preliminary deliveries of the Cybertruck at the end of November.