What's Going On With Tesla Stock Today

Tesla Inc TSLA shares are trading lower by 3.59% to $247.27 Wednesday morning, pulling back following Tuesday's strength and amid overall market weakness on rising yields. Shares gained Tuesday 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%.

It was also announced Wednesday, per Tesla Asia, that Tesla's Shanghai Gigafactory has produced 2 million vehicles as of today. The post was adjoined by a picture of the team at the factory posing with the milestone vehicle in their midst.

During his visit to China earlier this year, CEO Elon Musk said that the cars produced in China are not just the most efficient but also the highest quality.

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

What Happened With Tesla China Sales?

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.