Why Tesla Stock Is Seeing Blue Skies

Tesla Inc TSLA shares are trading higher by 4.6% to $256.29 Tuesday afternoon after the company reported a 9.4% year-over-year increase in China sales in August. On a month-over-month basis, sales rose 30.92%.

See Also: Cathie Wood Breaks Down $2,000 Tesla Price Target With Benzinga

What Happened?

In August, Tesla reported sales of 84,159 electric vehicles in China, reflecting a 9.4% year-over-year increase. Month-over-month, sales surged by 30.92% from July's figure of 64,285 units.

A detailed breakdown of sales, differentiating between exports and domestic sales, is anticipated next week.

Typically, Tesla concentrates on the domestic market during the latter half of the quarter, in line with preliminary estimates from CPCA...Read More

Why It Matters

China is the world's largest automobile market, offering an extensive customer base. With a growing middle class and increasing demand for electric vehicles, it presents immense sales potential for Tesla.

Additionally, the Chinese government has shown strong support for the electric vehicle industry, offering various incentives, subsidies and policy initiatives to promote EV adoption.

This favorable regulatory environment has benefited Tesla's sales and manufacturing operations in the country.

According to data from Benzinga Pro, TSLA has a 52-week high of $313.80 and a 52-week low of $101.81.