Tesla's sales in China fell -15.5% sequentially in January, as the automaker dealt with increasing EV competition and higher comps coming out of a record month in December.
China’s Passenger Car Association reported on Monday morning that the automaker had sold 59,845 total vehicles for the month in China. According to Bloomberg, that number included 19,346 cars sold in China and 40,499 units exported in the month.
Recall, Tesla sold 70,602 cars in China during December, marking a 34% sequential rise in sales from November into December.
For 2021, we reported that new energy vehicles stole the show in China, with sales totaling 2.99 million units. 2021 battery electric vehicle sales led the charge, according to Bloomberg, with sales up 168.6% to 2.44 million units for the year. China’s Passenger Car Association said that overall passenger vehicle sales finished the year at 20.5 million units, up 4.5% for the year.
The overall rise in vehicles sales for 2021 in China came after a torrid November, where we noted weeks ago that sales fell for the seventh straight month and were down 9.1% from the year prior as the industry continued to struggle with what is now becoming a years long semiconductor shortage.
CAAM spokesperson Chen Shihua commented last month: "Consumer acceptance of new energy vehicles continues to rise. The market has shifted from policy-motivated to demand-driven."
Meanwhile, January's numbers didn't stop Piper Sandler from raising their price target on Tesla Monday morning. Analyst Alexander Potter hiked his price target on the name to $1,350 from $1,300 and maintained his overweight rating.
Potter "forecasts 1.58M deliveries in 2022, which implies 69% growth versus 2021," The Fly reported Monday morning. Potter claims that the Model Y will be the company's largest near-term growth driver, while semi supply remains the biggest constriction.
He also said that "while Tesla's gross margin 'was a success story' in 2021, 2022 is hard to predict."