As Tesla delivered its first batch of the China-made Model 3 to customers, Tesla-related stocks in China enjoyed a bullish run, with most climbing by the 10 percent daily limit.
Ningbo Xusheng Auto Technology Co’s share price, for example, increased from 34.4 yuan ($4.95) on January 2 to 47.18 yuan on Thursday – a 37 percent increase in one week.
In a statement on Thursday, Xusheng, an auto parts maker and dealer, said its sales to Tesla accounted for 52.09 percent of its total revenue in the second half of 2019, and that Tesla was its biggest client.
Stock prices also increased for companies that have the potential to enjoy major cooperation with Tesla. SDK, a company offering electronic components and whose stock price increased 2.73 percent on Thursday, said in a statement that it already has products that can be applied to the Model 3.
Increases of Tesla-related stocks come after a series of recent moves from the carmaker have green-lit the company’s future: on-time delivery, lower product prices and the smooth, ongoing construction of its Shanghai factory. It is expected that the factory will be able to manufacture more than 500,000 cars once its construction is completed.
On December 30, Tesla delivered 15 made-in-China Model 3 cars to its employees in Shanghai. In January, Tesla lowered the price of the China-made Model 3 – the price of the basic model, with government subsidies, was lowered to below 300,000 yuan.
On Tuesday, exactly one year after Tesla began the construction of its Shanghai Gigafactory, the company held a high-profile delivery ceremony to hand over the first batch of China-made Model 3s to customers from the Chinese public. Tesla founder and CEO Elon Musk attended the ceremony.
In addition to the increases of Chinese stocks, Tesla’s recent moves have boosted investor confidence, resulting in a soaring stock price. Tesla’s stock price rose from $430.26 on January 2 to $492.14 on Wednesday – a 14 percent increase in one week, almost three times higher than its lowest point in June.
And Tesla’s rising stock price has helped the company become the most valuable US auto maker in history, with its market cap hitting about $82 million, almost equal to those of General Motors and Ford combined, according to Yahoo Finance.
Tesla CEO Elon Musk attends a ceremony in Shanghai on January 7 in which the US electric vehicle giant Tesla delivers made-in-China Model 3 cars to Chinese customers. Photo: Yang Hui/GT
