Breakout electric vehicle seller Tesla is now shipping cars directly from its Chinese plant to consumers in that country, in order to bypass obstacles like import duties and various kinds of shipping costs.
Wall Street Journal reports that two years after the opening of Tesla’s Shanghai plant, the company has just delivered its first Model Y crossovers internally in China.
“A local Model Y buyer said he attended a Monday event at a Tesla store in Shanghai to mark the start of deliveries and received his vehicle,” reports Trefor Moss. “State-run Xinhua News Agency also reported that Tesla started to deliver the locally-made crossovers on Monday. Tesla didn’t respond to questions on the matter. It wasn’t immediately clear how many Model Y crossovers Tesla has already made and delivered in China.”
Tesla started selling the Model 3 out of the Chinese plant domestically last year. Now Chinese drivers can buy the model why for about $52,000 US without the vehicle having to cross international boundaries.
Will all of this open up a much wider market for Tesla’s booming trade in electric vehicles?
Tesla turned a lot of heads in the investment world this past year, with a doubling in share prices and more gains after a 5 to 1 stock split.
Tesla stock is still near highs around $800 per share, after a 14% increase over the past month. Share prices tower above Tesla’s 200-day moving average at around $368, and 50-day moving average at around $612.
In fact, looking at the difference between the 200-day moving average and the 50-day moving average gives investors an intuitive idea of just how much Tesla has grown. Now many traders feel that opening up the enormous Chinese market will lead to further gains for Tesla in this sector. Take a look and think about whether you feel you can hold TSLA after previous gains to see even more upside, or whether the stock is now in overbought territory.
