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Key Takeaways
- The Chinese government can buy Tesla vehicles for the first time, according to reports.
- State-owned news outlet The Paper reported that Beijing can purchase Tesla Model Y SUVs.
- Tesla shares have rallied this week, and for the first time since early January are near their 2023 closing level.
The Chinese government has reportedly become a buyer of Tesla (TSLA) vehicles.
Reports from Reuters and other publications cited Chinese state-owned media outlet The Paper as saying Teslas were for the first time eligible for government procurement in that country, specifically saying that the starting price of the Model Y comes in below the country’s restrictions for SUVs.
It’s been a good week for the electric vehicle (EV) maker, shares of which were up about 0.8% in late morning trading and near-flat for the year.
On Tuesday, the company posted second-quarter deliveries of 443,946, and while that was a 5% decline from a year ago, it beat analysts’ estimates. The next day, Wedbush and Bank of America raised their price targets on the stock.
Wedbush analysts said the deliveries were “a major turning point” for the carmaker after what it called a “very choppy” start to 2024. Bank of America noted that more lower-priced EV models should drive volumes this year.
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