Key Moments
- Shares of several China-based Tesla suppliers advanced between 5% and 9% in Mainland trading.
- Tesla reported record second-quarter deliveries of 480,126 vehicles, supported by demand in Europe and modest growth in China.
- Lower-cost Model 3 and Model Y variants and a refreshed Model Y supported sales of China-produced vehicles.
Supplier Stocks React to Strong Tesla Quarter
Investing.com– Chinese companies that supply parts to Tesla saw their shares gain on Friday after the electric vehicle manufacturer reported robust second-quarter delivery numbers, fueling expectations of a possible turnaround following two years of declining sales.
Auto parts makers Ningbo Xusheng, Ningbo Tuopu, and Zhejiang Sanhua rose between 5% and 9% in Mainland trading. In Hong Kong, Fuyao Glass advanced 3%, and leading battery producer CATL edged up 0.7%.
Market Performance Snapshot
| Company | Market | Move | Role |
|---|---|---|---|
| Ningbo Xusheng | Mainland China | +5% to +9% range (with peers) | Auto parts supplier to Tesla |
| Ningbo Tuopu | Mainland China | +5% to +9% range (with peers) | Auto parts supplier to Tesla |
| Zhejiang Sanhua | Mainland China | +5% to +9% range (with peers) | Auto parts supplier to Tesla |
| Fuyao Glass | Hong Kong | +3% | Supplier to Tesla |
| CATL | Hong Kong | +0.7% | Major battery supplier to Tesla |
Record Deliveries and Product Strategy
Tesla delivered a record 480,126 vehicles in the June quarter, supported by firm demand in Europe and a small increase in sales in China.
The company rolled out several lower-cost versions of its core Model 3 and Model Y line-up, which helped support volumes, particularly against the backdrop of rising global fuel prices.
Production of an updated Model Y also contributed to higher sales of vehicles built in China, underscoring that the country remained a critical manufacturing and demand center for the automaker.
Competitive Backdrop in China and Europe
Tesla’s solid sales performance came even as it faced intensifying competition from major Chinese electric vehicle manufacturers such as BYD, which have also been steadily increasing their footprint in Europe.
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