Tesla stock spiked nearly 6% and was holding on to a gain of 4.6% at 11:10 a.m. ET Monday morning. Its shares price is rising as the company prepares for its upcoming Investor Day on March 1.
Investors in Tesla are excited and looking forward to hear what the company will say on Wednesday regarding new innovations and products including potential updates on its robot taxis and a lower-priced mass-market vehicle. However, it might be what’s happening outside its home market in the United States that has the stock surging.
Tesla Stock: What To Expect
The Chinese and European markets are the global leaders in electric vehicle (EV) sales, and good news for Tesla came out of both today. Tesla continues to increase its production capacity in its German manufacturing plant, and it is now producing 4,000 units per week ahead of schedule, reports Reuters. In China, EV maker Li Auto reported its most recent update for investors, and its promising outlook for the coming months is good news for Tesla too.
Li delivered about 15,000 of its electric cars in January. The company projected first-quarter deliveries of about 52,000 and 55,000 electric cars. That translates to an average production of about 19,000 per month for February and March. That volume approaches Li’s monthly record, which it set in December 2021. Sales from most EV makers in China were low the previous year from production and consumer impacts due to the COVID-19 epidemic and lockdowns. It’s great news for Tesla’s Chinese sales if that damage is finally over.
Tesla’s plant in Shanghai, China, is its highest-volume facility. It has also used that factory to supply European customers. The news that Tesla’s German factory is several weeks ahead of schedule with its production ramp-up means the company is very likely to hit its 50% annual growth target for sales.
Tesla investors are buying the stock today based on that news as well as the potential updates the company will provide on Wednesday.