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Tesla gets boost from China’s regulations as Europe sees influx of Model 3 registrations
Tesla’s push into the international market with its Model 3 electric sedan could see a notable boost, thanks in part to some unexpected support from Chinese regulations and what appears to be widespread support for EVs in the European region. With the Model 3 about to saturate the right-hand-drive markets, it appears that Tesla’s ramp of the vehicle is entering its later stages.
A recent update from Beijing stands to benefit the countries’ largest local electric car companies and Tesla, which is currently building a wholly-owned factory in Shanghai. In an announcement on Friday, China’s Ministry of Finance announced that it would be extending a sales tax break for battery-powered and hybrid vehicles. A change was expected to go into effect on Monday, but with the update in place, battery-powered and hybrid vehicles will still be exempt from a 10% sales tax until the end of 2020.
With the extension of the tax break, analysts from China have noted that strong brands in the EV sector, such as Tesla and local companies like Geely Automobile Holdings, SAIC Motor, NIO, and Xpeng Motors, would likely see benefits from the government’s adjustment. Tax break or not, the China Association of Automobile Manufacturers expect New Energy Vehicle (NEV) sales in the country to increase by 27%, which would translate to around 1.6 million units over the course of 2019. If these forecasts prove accurate, China will set another sales record for its NEV initiative this year.
If Tesla starts producing the Model 3 at Gigafactory 3 later this year, the company could tap into the country’s growing NEV market. Tesla, after all, is considered a premium brand in the country, holding a reputation that is not too far from Apple. Tesla’s vehicles like the Model X have been considered as status symbols in the past, and this could ultimately benefit the Model 3, which offers a more affordable entry point into the Tesla ecosystem.
Apart from a potential boost thanks to China’s regulations, Tesla’s push into the European market also appears to be bearing fruit. Tesla conducted a massive end-of-quarter push in Europe last month, as part of its attempt to meet or even break its record in Q4 2018, when it delivered over 90,000 vehicles in one quarter. Data from Europe’s car sales in June 2019 show that Tesla’s delivery push might have paid off.
June’s sales from the European region are currently trickling in, and based on data from countries such as Norway and the Netherlands, where registrations surpassed 2,500 for the first time, Tesla appears to be increasing its reach. Denmark also saw 426 Tesla registrations, which is more than four times the total for all of 2018. In line with the company’s end-of-quarter push, almost a third of Denmark’s Tesla registrations were submitted in the last week of June. This influx of registrations is likely due to the Model 3, which is currently being shipped to the region.
Bloomberg Intelligence global autos analyst Kevin Tynan believes that Europe’s momentum could help the company, particularly as the company’s expansion in the US “stalls.” The analyst also expects Tesla to meet competition in Europe and China, as the company will have to challenge established local competitors. “Tesla’s global push will deliver expansion as the US stalls, but at great expense to margin. And dominance of the battery-electric vehicle market may not come as easily in China and Europe, as the company faces established hometown — and government — favorites there,” Tynan wrote.
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Tesla’s Model 3 ramp has been the focus of the company for over a year. As Tesla starts its push into the RHD territories this quarter, and as the company prepares to manufacture the Model 3 in China, the later stages of Elon Musk’s play into the mass market could finally be at hand. Once the Model 3 ramp reaches its full fruition, Tesla could start its next, more ambitious push into the mainstream: the Model Y, which will compete in the competitive and lucrative crossover SUV market.
Elon Musk shed two new bits of detail on Starship following its 13th test launch, which was an overwhelming success.
SpaceX launched Starship for the 13th time last Friday after two delays: one on Monday when several Raptor engines did not ignite, and another on Thursday due to unfavorable weather conditions in Starbase, Texas.
The launch was overwhelmingly successful. SpaceX was able to complete a necessary test of the heat shield tiles by increasing the acceleration of Starship from launch throughout the flight; 20 Starlink v3 satellites were released with no issue; the Super Heavy Booster landed safely in the Gulf of America, Ship successfully reignited engines while in space; and it also splashed down without incident in the Indian Ocean.
SpaceX Starship just nailed something it’s never done before
Nevertheless, more details are coming out about Starship, and Musk is doing the talking.
Starship Will Be Retrieved in the Ocean
Musk revealed on Tuesday night that Starship would be recovered by a ship in the Indian Ocean. SpaceX routinely tries to recover Starship after splashdown in an effort to find out more about the flight by examining the spacecraft afterward.
We’re sending a ship out to recover Starship https://t.co/fUqUZTITO9
— Elon Musk (@elonmusk) July 28, 2026
This helps engineers find out more about why things might have happened, allows them to examine any potential damage or anomalies that might have occurred, and increases the chances of an even more successful flight next time thanks to the additional information recovered.
Ship Could Have Been Caught by Tower Arms, Musk claims
Musk has already indicated that SpaceX will plan to attempt a catch of Starship with the 14th test flight. While this would be a major accomplishment, it would be an expected next step, considering the fact that the Super Heavy Booster has already been caught by the chopsticks on numerous occasions.
The ship landing was precise, meaning that it would have been caught by the tower arms https://t.co/6nbNrRfX9P
— Elon Musk (@elonmusk) July 29, 2026
A ship catch would be a great indication of where SpaceX stands in terms of reusability and launch cadence. A successful catch with relatively no incidents would be a good sign that SpaceX is nearing a more frequent launch of Starship, but also that the reusability of the massive rocket would be something many would expect in the near future.
It is a necessity to make life multiplanetary.
Elon Musk has updated his timeline for when humans will walk on Mars and for when ships will simply get there.
The objective of getting to Mars has been one of Musk’s biggest goals since becoming a serial entrepreneur and realizing that time on Earth is limited. Musk has said several times he hopes to die on Mars, and not by impact.
Musk now believes that people will be on Mars in “roughly 5 to 7 years.” He said that a Mars lander will get there “a few years sooner.”
People on Mars in roughly 5 to 7 years.
Mars lander a few years sooner.
— Elon Musk (@elonmusk) July 29, 2026
The response from Musk comes after NASA Administrator Jared Isaacman said that SpaceX’s biggest priority is the Moon and not Mars. Because of this, Isaacman conceded that he believes nuclear power and propulsion investments will provide “potentially the pathway with the fewest miracles required to put four people on Mars in the next 10 to 15 years.”
Of course, this is what NASA can do through taxpayer funding and nuclear investments, he added.
Musk’s grand ambitions are much more optimistic than most, and it is certainly a double-edged sword. This is not the first time timelines for Mars have been somewhat lofty, especially to those normal thinkers like you and me, not super geniuses like Musk.
In fact, the SpaceX and Tesla frontman has said on at least a dozen occasions that we could be on Mars in the coming years. Musk said 2020 would be the big year as early as 2009. In 2020, he was “highly confident” of a landing in 2026, and had even said 2024 in a best-case scenario.
The point is, the range has varied, and it’s anyone’s guess when we’ll get there. This latest adjustment to the timeline is typical of Musk, and while the Moon has seemingly taken priority over Mars, it is still worth mentioning that the ultimate goal is to make life multiplanetary, and it starts potentially with the Red Planet.
SpaceX (NASDAQ: SPCX) got an absolutely crazy price target rating from Raymond James after the company experienced a tough first few weeks following its Initial Public Offering (IPO).
Despite the tumultuous start, SpaceX has plenty of believers, and the company’s massively successful Starship launch last Friday, its 13th test flight of the massive rocket, went so smoothly that Raymond James analysts pushed its price target on the company to roughly 7 times its current trading level.
SpaceX Starship just nailed something it’s never done before
The firm officially put a “Strong Buy” rating and an $800 price target on the stock. It currently trades at around $113. Its all-time high is $225.64, reaching this trading level shortly after shares first went public.
Raymond James’ price target is tied to the firm’s confidence after Starship’s 13th test flight. Analysts at the firm said it was an incremental step that reduces engineering risks, citing the widely successful heat shield test that CEO Elon Musk recently detailed, the smooth deployment of Starlink V3 satellites, and a successful in-space engine relight.
SpaceX also managed to see Starship splash down safely in the Indian Ocean, while the Super Heavy Booster fell down to the Gulf of America with no incidents.
It is interesting to see these launches have such a tremendous impact on the stock and what investors think of it. After SpaceX initially delayed the Starship launch last week, shares fell tremendously. Most probably did not realize that the stand-down is a standard practice, especially if everything is not perfect.
The mission was initially aborted due to an issue with Raptor engines. This was resolved, and Starship launched last Friday after another delay on Thursday, which was caused by weather.
Now that analysts have seen what SpaceX launches are capable of and how impressive the feat is, firms are adjusting their price targets accordingly, making it known that they have high expectations for the space exploration company.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Elon Musk updates the SpaceX timeline for Mars
