Tesla: Model Y-Order Boom in China – Stock Remains Cautious

Despite an impressive order record for the revamped Model Y in China, the Tesla stock is currently struggling with declining prices. While an impressive 200,000 pre-orders were recorded in China, actual sales figures have fallen short of expectations in recent months. In this article, we explore why the strong order boom has not yet boosted the stock price and what positive prospects Tesla still has.

Success of the Model Y in China

Massive Order Increase:
Since the start of pre-orders on January 10, Tesla stores in Beijing have recorded almost 100 new orders daily. A total of 200,000 pre-orders for the facelift model have been registered nationwide.
Refund Mechanism:
Initially, many orders were recorded as refundable, but with the official delivery start on February 26, this mechanism was eliminated. Over 6,000 vehicles were delivered to customers in the first week.

Challenges in Sales and Impact on Stock Price

Decline in Actual Sales:
Despite the order boom, vehicles produced in China in January and February fell by 28.7% compared to the previous year period – a clear sign of challenges in execution.
Stock Price Development:
On the stock exchange, the Tesla stock price initially remained cautious despite positive market forecasts. Analysts see long-term advantages for Tesla in the current political framework, particularly due to the new US administration under Donald Trump.

Optimistic Future Prospects and Market Opportunities

Innovation Cycle and New Model:
Investment bank Wedbush Securities has included Tesla in its "Best Ideas List" and expects a significant innovation cycle. Additionally, a more affordable Tesla model under $35,000 is expected mid-year, which could further boost sales.
Political Environment:
Analysts believe that Tesla's revenue will be only slightly affected by political controversies. A deregulated market environment and favorable legislation for autonomous driving could provide additional momentum in the long term.

Conclusion
Although the strong order boom of the revised Model Y in China represents a positive signal for Tesla, the stock price remains cautious for the time being. The current challenges in sales and the discrepancy between pre-orders and actual sales are weighing on the price. In the long term, however, Tesla continues to offer a lot of potential with new models and a favorable political environment – a development that is likely to be decisive in the coming months.