Freedom: Investors Ease Concerns Over Tesla Stock Amid Sharp Rise in Car Deliveries to China

Tesla (TSLA) boosted deliveries of China‑made electric vehicles by nearly 40% in May, reaching 85,982 vehicles. According to Freedom analyst Vladimir Chernov, this has eased concerns about the company’s competitiveness in China — the world’s largest EV market.

Tesla is one of the leading EV manufacturers by market capitalization. The company’s Shanghai plant supplies vehicles both to the Chinese market and for export.

The delivery growth came amid a recovery in the Chinese EV market, which expanded by 12% YoY in May. According to Vladimir Chernov, the released data confirms that demand for Tesla vehicles remains robust in China, even as competition with local manufacturers intensifies.

Freedom notes that an additional catalyst for the company’s stock could be the development of the Full Self‑Driving (FSD) system in the Chinese market. However, this factor is still accompanied by regulatory uncertainty. Specifically, legal proceedings related to claims about the availability of the technology for Tesla vehicle owners are ongoing in China.

At the same time, market competition remains extremely high. Tesla continues to face significant pressure from Chinese EV manufacturers, including BYD, Leapmotor, and Zeekr, which are actively increasing sales and expanding their model lineups.

According to Freedom analysts, the May statistics could support Tesla stock in the short term. However, for a sustainable rise in share prices, investors will need to see further progress in obtaining regulatory approvals for FSD in China, as well as signs of stabilizing business profitability amid ongoing price wars in the industry.

Not an individual investment recommendation.