Tesla in China : sales grew up to 350%, short-sellers lost $3.7 billion

After several years of unsatisfactory development, Tesla has finally made progress in China- the data shows that, Tesla China's deliveries in the first quarter increased by 350%, becoming the next growth pole outside the United States. According to Reuters, short-sellers have already lost $3.7 billion since the beginning of this year, due to the rise of Tesla's stock price.

The improvement of Tesla China's sales has been announced at the earnings call of 2016 on February 22nd of this year. The data shows that, the sales have reached $ 1 billion in 2016, accounting for about 15% of Tesla's global sales, while sales in the US have reached $ 4.2 billion, accounting for more than 50% of its global sales. Although the Chinese market did not meet the expectations of Elon Musk - growing into the world's largest market, after all, a steady growth has began.

Analysts have predicted that the sales of Tesla China in 2017 will reach $ 2 billion - taking into account Tesla's inability to complete Model 3 orders in 2017, regardless of exchange rate fluctuations, it is roughly equivalent to an increase of 100% in 2017. But the market performance has far exceeded all expectations. The market research company, JL Warren Capital’s statistics show that in the first quarter of this year, Tesla exported a total of 4799 Model S & X to China, the amount of deliveries increased by 350%. According to Tesla's first quarterly delivery (25418), Tesla China has accounted for 20% of its global market share.

Although JL Warren Capital counted the amount of imports rather than terminal deliveries, considering Tesla has little inventory in China, it will not be much different from the upcoming official statistics.

From Tesla's point of view, as early as the third quarter of last year, the Tesla Model S has became the best-selling luxury car in the United States, as 9156 vehicles were delivered, almost twice as much as the second-ranked Mercedes-Benz S-level. Except for the third runner BMW 7 Series, the sales of other brands are lower than 2000. From the overall data, the Model S has won 1/3 of the market share of the US luxury car market. However, Tesla is also facing the problem of saturation in the US market, and the subject of opening up new markets to maintain the continuous growth of deliveries of Model S.

Other than the United States, no country or region is better suited to Tesla's next stop than China.

In 2016, the sales of electric cars in China has gone up by 53%, reaching 507,000 vehicles, exceeding the United States. China thus became the world's largest electric car market. But in the Chinese luxury car market, the performance of Tesla Model S is still poorer than in the US. For 36 krypton, it seems like exploiting the potential of Chinese market has become the focus of Tesla’s sales team in 2017.

Therefore, the warm welcome Musk sent to Tencent for its $ 1.8 billion investment and for becoming Tesla's fifth largest shareholder, or his recent visit to the Vice Premier of State Council, Wang Yang, can be regarded as signals of Tesla’s high-level attention to the Chinese market.

In addition to the Chinese market, we mentioned above that the amount of Tesla deliveries in the first quarter has reached 25418, a number that has gone up by 69% compared to 2016. Coupled with Wall Street's high expectations for Model 3, Tesla's stock continues to rise. According to Reuters, this year, short-sellers have already lost $ 3.7 billion on Tesla, more than on Apple, Amazon and Netflix.

Tesla's has become a battlefield for investors and short-sellers.

The investors believe that Elon Musk will completely change the automotive industry, while the short-sellers are questioning Tesla's radical goals of production .

Recently, the confrontation between investors and short-sellers has become more and more intensive. The stock price of Tesla continues to rise, repeatedly setting new records, but the short-sellers are also raising the intensity of short-selling. According to the data coming from the financial analyst company, S3 Partners, in early April, the amount of short-selling on Tesla's stock has rose to $ 10.1 billion from $ 8.7 billion. At the same time, the stock price of Tesla rose by 15%, the book losses of short sellers have reached $ 1.4 billion. On the macro level, this year, Tesla's stock price violently increased by 50%.

According to statistics coming from the chief analyst of S3 Partners, Ihor Dusaniwsky, this year, the losses of short-sellers on Tesla stock have reached $ 3.7 billion, far more than the losses on other stocks. Dusaniwsky said that the other three star stocks were Apple, Amazon and Netflix, on which short-sellers have lost $ 1.5 billion, $ 1.1 billion and $ 776 million respectively.

The UBS analyst, Colin Langan wrote that with the Model 3 production plan approaching, any relevant news will lead to more intense confrontation between the two sides.

So what about Musk who is in the center of the vortex? In early April, when Tesla surpassed the General Motors as America's first car stock, he ridiculed the short-sellers through Twitter: ‘This is a storm for the Shortville.’

Of course, for Chinese consumers, set the short-sellers aside, we are more concerned about when Tesla factories in China will be put on the agenda.

Original article here

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