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Tesla Sees "Softness" in April Deliveries in China, Wedbush Says

05/11/2021 06:50

10:36 AM EDT, 05/11/2021 (MT Newswires) -- Recent negative publicity in China on safety and spying issues tainted Tesla's (TSLA) electric vehicle deliveries in the region which witnessed some "softness" in April, Wedbush said in a Tuesday note, citing data from China Passenger Car Association.

The electric car maker sold 25,845 electric vehicles in China in April, lower than 35,478 in March. Moreover, an additional 14,174 cars were delivered to Europe thanks to solid demand from the region.

Analyst Daniel Ives noted Tesla "stagnated" in April compared with local Chinese peers Nio (NIO), Xpeng (XPEV) and Li Auto (LI). Additionally, the sustained global chip shortage is placing more burden on Tesla's production and logistics. The shortage also points to more vehicles going to Europe in May versus Street forecasts.

Wedbush maintained Tesla's outperform rating and $1,000 price target.

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