Tesla Stock Doesn't Budge Despite Strong China Weekly Insurance Data, Price Hike Rumors: What's Going On

Tesla, Inc. TSLA shares traded down in premarket trading on Tuesday even as traders digest a couple of positive catalysts.

Weekly China insurance registrations showed that insurance registrations for Tesla EVs came in at 14,000 units in the week ended Nov. 5, CnEVPost reported, citing data provided by Li Auto, Inc. LI. Commenting on the data, Future Fund’s Gary Black said, “This likely incl ~3K M-3 Highlands. TSLA China 4Q registrations now just 7% below 3Q after 5 weeks.”

Black also noted that multiple sources said Tesla China is planning price increases for Model Y SR and LR in the coming weeks. Tesla, in late October, raised prices of its Model Y Performance variant in China by about $2,000. “This would increase conviction that Tesla auto gross margins have bottomed – a necessary condition for the stock to rise from here,” he said.

He also expects communication of a coming price hike to accelerate Tesla volumes into November.

The weakness in Tesla stock could have been due to the decline in the U.S. stock futures, which are pointing to a lower open by the major averages.

Separately, Morgan Stanley’s Adam Jonas said in a late-Monday note that Tesla’s stock price might not inflect higher unless the company avoids earnings disappointment, expands EVs beyond the current lineup, and shifts focus to capital-light revenue avenues such as licensing, software, content, etc.

In premarket trading, Tesla fell 0.74% to $217.65, according to Benzinga Pro data.

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