Investor's Corner
Tesla China’s average April not something to ‘get hung up on’: Piper Sandler
Tesla China’s average sales figures in April are not something to “get hung up on,” according to the analysts at Wall Street firm Piper Sandler.
Tesla’s performance in sales in April in China wasn’t typical for the electric automaker, as figures from the Chinese Passenger Car Association showed that Tesla had successfully sold 25,845 units during the fourth month of the year. This included 14,174 exports that were shipped off to other regions, including Europe, where Tesla has been delivering cars from Giga Shanghai since the beginning of 2021.
However, these numbers are conflicting, and there seems to be some confusion within many analysts and those who track vehicle registration statistics. Initially, it was reported as a massive month for Tesla in China, with the over 14,000 exported vehicles not being included in the 25,845 units sold domestically to the Chinese market. This would make Tesla’s April in China a huge deal: 40,019 cars produced and delivered from Giga Shanghai.
Piper Sandler mentions in their note that the confusion between the conflicting reports is causing plenty of interaction with clients who are invested in Tesla stock. “We’ve been exchanging emails with confused clients all morning, following the overnight release of Tesla’s monthly sales figures in China,” Sandler analysts wrote. “Our original interpretation: 25,845 units were sold in China, but this may be incorrect. The wording online is vague/contradictory (exports have not historically been disclosed), and it’s possible that a TOTAL of 25,845 units were sold, only 11,671 of which were in China.”
Sandler analysts are looking at both scenarios with the possibility that either is realistic. A -66% month over month decline from March to April seems like it’s hard to believe, but reports from China indicate that Tesla’s Model Y production line was impacted for at least two weeks in April. This would contribute to the idea of a massive monthly dropoff in sales simply because Tesla didn’t have the capability to deliver that many units.
$TSLA https://t.co/0bkrR9IMl7 pic.twitter.com/RsvebE7cba
— David Tayar (@davidtayar5) May 11, 2021
Telsa sold 10,000 Model Y units in China in March, the Sandler note says. The analysts indicate that they believe April’s figures would have been higher as Tesla continues to ramp production volume at the Chinese plant. If Tesla shut down the Model Y lines for two weeks, there would have been a drop in sales of between 5,000 and 7,000 units, the analysts predict.
Still, the analysts at Piper Sander, which includes Alex Potter and Winnie Dong, don’t believe that the lackluster performance in April is anything to be concerned about. “Don’t stare too closely at these monthly numbers because it’s easy to get tied up in knots. We prefer to examine Tesla’s market share on a trailing 3-month basis, and we try to avoid extrapolating based on the most recent month of data. This is the case regardless of whether the latest results were good (supporting our thesis) or bad (contradicting our thesis).”
The market share argument is much more convenient for examining Tesla’s long-term success in the Chinese market. Through March 2021, Tesla had the second and fifth-most popular vehicles in China. The Model 3 is second, with 52,859 units registered in 2021, accounting for 11% of the total EV market share in China. The Model Y was in fifth, with 16,422 units accounting for 3% of the market share. Tesla’s either 25,845 units or 40,019 units, depending on how you choose to look at it until the CPCA gives clarification, only contributes to the company’s strong sales performance in China.
According to the EV Sales Blog, these figures contribute to Tesla’s industry-leading performance as the most popular OEM in the EV sector, with a commanding lead over SAIC through Q1.
Disclosure: Joey Klender is a TSLA Shareholder.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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