tl;dr
<p>China saw a record-breaking delivery of 2.24 million cars in August, including 716,000 electric vehicles and plug-in hybrids, marking a 35% increase from the previous year. The China Passenger Car Association credits strong sales to exports and Tesla's success in the Chinese market, deliver...
China recorded a record-breaking delivery of 2.24 million cars in August, defying the typically slow period of time.
Of these deliveries, electric vehicles (EVs) and plug-in hybrids accounted for 716,000 units, marking a 35% increase compared to the previous year. The China Passenger Car Association attributed the strong sales to exports, which played a pivotal role in driving overall sales growth.
Tesla, in particular, saw notable success in the Chinese market. In August, the automaker delivered almost 31% more China-made cars compared to July, totaling 84,159 vehicles. This figure includes 64,694 cars sold in China and 19,465 units exported. As competition intensifies, Tesla has been reducing prices for its China vehicles.
Meanwhile, electric vehicle manufacturer BYD saw a 57.5% year-over-year increase in passenger vehicle deliveries for August, signaling a strong growth trend in the market.
However, there are concerns about Tesla's valuation. Staunch supporters claim that Tesla deserves a different valuation, but Seeking Alpha analyst Sapphire Wealth Insights argues that the automaker's dwindling margins and increasing competition put it in line with traditional car companies. Additionally, Elon Musk's unpredictable actions and statements introduce an extra layer of risk for the company. Therefore, the analyst believes that Tesla's current share price is unsustainable.
Despite the concerns, shares of Tesla have soared by 132% year-to-date.