Key Takeaways
- According to reports, the Chinese government will be able to purchase Tesla cars for the first time.
- State-run media outlet The Paper reported that Beijing could buy Tesla Model Y SUVs.
- Tesla shares rose this week, approaching their 2023 closing price for the first time since early January.
The Chinese government has reportedly become a buyer of Tesla (TSLA) vehicles.
Reuters reports Chinese state media outlet The Paper reported that Tesla will be the first carmaker to be targeted for government procurement in the country, and that the starting price of the Model Y will be below the country’s SUV regulations, other publications have said.
It’s been a good week for the electric vehicle (EV) maker, with its shares up about 0.8% in late morning trading and roughly flat for the year.
The company reported Tuesday that it delivered 443,946 vehicles in the second quarter, down 5% from a year ago but beating analyst expectations. The following day, Wedbush and Bank of America raised their price targets on the stock.
Wedbush analysts said the deliveries mark a “major turning point” for the company after a “very shaky” start to 2024. Bank of America said a rise in lower-priced EV models will drive sales this year.
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