Tesla (NASDAQ:TSLA) reportedly continues to make efforts to counter intense competition in China. The EV giant recently launched its revamped Model Y car in China, but at the same base price as before. Furthermore, TSLA is planning to allow customers to buy cars directly on JD.com’s (JD) online market to boost sales growth.
Before discussing these moves in detail, it is worth mentioning that TSLA’s rivals Nio (NIO), Li Auto (LI), and XPeng’s (XPEV) September deliveries grew 44%, 213%, and 81%, respectively, year-over-year. TSLA is likely to release its Q3 delivery numbers soon, which might have been impacted by factory shutdowns and muted demand.
Tesla’s Efforts to Meet Chinese Competition
TSLA has upgraded its Model Y with some new designs and performance tweaks. The changes include a new wheel design, faster acceleration time, and LED dashboard lighting. The starting price for the company’s best-selling vehicle is left unchanged at 263,900 yuan ($36,146).
The unchanged pricing suggests TSLA’s efforts to remain competitive and stimulate demand in the Chinese market.
Furthermore, TSLA is tapping into online sales channels in China to boost topline performance. Tesla is partnering with JD to streamline the ordering process and facilitate easier deposit payments. Their official flagship store is expected to offer a wide range of products, including charging equipment, accessories, and fashion items.
Is TSLA a Good Stock to Buy?
Overall, Tesla has a Moderate Buy consensus rating on TipRanks. This is based on 12 Buys, 12 Holds, and four Sells. The average price target of $273.46 implies 9.3% upside. Shares have risen 131.5% year-to-date.
Investors looking for the most successful analyst covering TSLA stock could follow analyst Alexander Potter from Piper Sandler. If one were to replicate Potter’s trades on Tesla and hold each position for one year, about 64% of the transactions would result in a profit with a massive average return of 111.04%. Potter most recently reiterated a Buy rating on the stock three days ago.
