What happened
Tesla (TSLA 5.50%) shares are rising Monday as the company prepares for its upcoming Investor Day on March 1. The stock jumped nearly 6% and was holding on to a gain of 4.6% at 11:10 a.m. ET Monday morning.
So what
Investors are excited to hear what the company says on Wednesday regarding new innovations and products including potential updates on robotic taxis and a lower priced mass-market vehicle. But it might be what's happening outside its home U.S. market that has the stock surging today.
Now what
The Chinese and European markets are the global leaders for electric vehicle (EV) sales, and good news for Tesla came out of both today. Tesla continues to ramp up 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.
Image source: Tesla.
Li delivered just over 15,000 of its electric cars in January, but it projected first-quarter deliveries totaling between 52,000 and 55,000. That implies an average 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 struggled last year from production and consumer impacts related to COVID-19 lockdowns. It's great news for Tesla's Chinese sales if that damage is finally in the rearview mirror.
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 more likely to hit its 50% annual growth target for deliveries.
Tesla investors are buying the stock today based on that news as well as the potential updates the company will provide on Wednesday.
