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Tesla ‘a disproportional beneficiary’ of China’s incoming green tidal wave: Dan Ives

Tesla Made-in-China Model 3 (Source: Tesla China | Twitter)

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Tesla is set to be “a disproportional beneficiary” of China’s growing adoption of electric vehicles and sustainable energy, according to Wedbush analyst and Tesla bull Dan Ives.

After navigating through a difficult few months in China, where Tesla combated unfair PR on several occasions that brought the safety of the company vehicles into question, Ives now believes that the automaker can now focus on expanding on its already solid foundation in the region. The Chinese market has been an exceptionally potent location for electric vehicle makers, becoming a main focus of several OEMs that are working to transition toward electrification. Tesla, while being a mainstay in China’s EV sales leaderboard for over a year, is primed to benefit from the market’s evergrowing love affair with the electric vehicle, continuing a monumental climb toward automotive legacy in the world’s largest car market.

Despite falsified reports of faulty braking systems on several occasions, Tesla has managed to be one of the best-selling EV manufacturers in China. In Q2, Tesla sold over 53,000 cars in China, capped off by an impressive 28,138 cars in the domestic market in June. The strong performance was fueled by demand for the Model 3 and Model Y, the two cars that Tesla manufactures in China at the Giga Shanghai production facility.

Although Tesla’s Q2 was a strong one, it wasn’t all sunshine and rainbows for the Silicon Valley-based electric car company. As previously mentioned, Tesla battled several claims of brake failures in its vehicles. The initial occurrence of this was at the Shanghai Auto Show, where the Tesla booth was infiltrated by a woman who claimed faulty brakes caused a dangerous accident. Tesla navigated through this scandal, along with several others by continuously debunking these claims. The company eventually set up a Special Handling Team to handle these issues, and also threatened legal action for those who were attempting to gain notoriety or money through false claims.

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Ives acknowledges Tesla’s bumpy and tumultuous road in China in Q2, but the performance, which is indicated through the strong sales figures during the PR nightmare, essentially proves the company is ready to move on to even more robust sales figures. “We believe Tesla have navigated the safety/PR issues better than expected, and are now in a position to accelerate market share in this key region,” Ives wrote.

In May, Ives also wrote that Tesla, along with other manufacturers like NIO, Xpeng, and Li Auto, would all benefit from an increasing EV market share in China. Ives wrote in the May note that only 5% of total automotive sales in China were EVs and that the next two years would result in a doubling of this market concentration of electrified models.

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In short, the benefits of a more supported EV market in China are going to fuel many automakers, but Tesla seems to be the one that Ives is putting his money on. This is mostly because of the fact that bad press really didn’t affect sales figures, and Tesla continues to perform in one of the most heavily concentrated EV markets globally.

Ives is ranked 43rd out of 7,591 analysts on TipRanks.com. He has a success rate of 74% and an average return of 35.3%.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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California hits Tesla Cybercab and Robotaxi driverless cars with new law

California just gave police power to ticket driverless cars, including Tesla’s Cybercab fleet.

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Concept rendering of Tesla Cybercab being cited by CA Highway Patrol (Credit: Grok)

California DMV formally adopted new rules on April 29, 2026 that allow law enforcement to issue “notices of noncompliance”, or in other words ticket autonomous vehicle companies when their cars commit moving violations. The rules take effect July 1, 2026 and officially closes a regulatory gap that previously let driverless cars operate on public roads with nearly no traffic enforcement consequences.

Until now, state traffic laws only applied to human “drivers,” which meant that when no person was behind the wheel, police had no mechanism to issue a ticket. Officers were limited to citing driverless vehicles for parking violations only. A well-known example came in September 2025, when a San Bruno officer watched a Waymo robotaxi execute an illegal U-turn and could do nothing but notify the company.

Under the new framework, when an officer observes a violation, the autonomous vehicle company is effectively treated as the driver. Companies must report each incident to the DMV within 72 hours, or 24 hours if a collision is involved. Repeated violations can result in fleet size restrictions, operational suspensions, or full permit revocation. Local officials also gained new authority to geofence driverless vehicles out of active emergency zones within two minutes and require a live emergency response line answered within 30 seconds.

Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue

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California’s new enforcement rules arrive at a pivotal moment for Tesla. The company is ramping Cybercab production at Giga Texas toward hundreds of units per week, targeting at least 2 million units annually at full capacity, while simultaneously pushing to expand its Robotaxi service to dozens of U.S. cities by end of 2026. Unsupervised FSD for consumer vehicles is currently targeted for Q4 2026, and when it arrives, Tesla’s fleet may not have a human to absorb legal accountability, under the July 1 rules.

Tesla has confirmed plans to expand its Robotaxi service to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, with the service already running without safety drivers in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year.

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Tesla Model X shocks everyone by crushing every other used car in America

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

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Credit: Tesla Asia | X

The Tesla Model X was the fastest-selling used vehicle in the United States in the first quarter of the year, crushing every other used car in America.

iSeeCars data for the first quarter shows that the Model X was the fastest-selling used car, lasting just 25.6 days on the market on average, two days better than that of the second-place Lexus RX 350h. The Cybertruck, Model Y, and Model S, in seventh, ninth, and thirteenth place, respectively, also made the list.

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

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Bringing closure to these two vehicles signaled the end of the road for the cars that have effectively built Tesla’s reputation for luxury and high-end passenger vehicles.

Relying on the sales of its mass market Model Y and Model 3, as well as leaning on the success of future products like the Cybercab, is the angle Tesla has chosen to take.

Teslas are also performing extremely well as a whole on the resale market. iSeeCars data shows that, “while the average price of a 1- to 5-year-old non-Tesla EV fell 10.3% in Q1 2026 year-over-year, the average price of a used Tesla was essentially flat at 0.1% lower across the same period. Traditional gas car prices dropped 2.8% during this same period.”

Additionally, market share for gas cars has dropped nearly 3 percent since the same quarter last year. Tesla has remained level, while the non-Tesla EV market share has increased 30 percent, mostly due to more models available.

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Nevertheless, those non-Tesla EVs have seen their value drop by over 10 percent, while Tesla’s values have remained level.

Executive Analyst Karl Brauer said:

“Used electric vehicles without a Tesla badge have lost more than 10% of their value in the past year. This compares to stable values for Teslas and hybrids, and a modest 2.8% drop for traditional gasoline vehicles.”

Teslas, as well as non-luxury hybrids, are displaying the strongest resistance in the face of faltering demand, the publication says. But the more impressive performance is that of the Model X alone.

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Tesla’s decision to stop production of the Model X may have played some part in the vehicle’s pristine performance in Q1. With the car already placed at a premium price point, used models are already more appealing to consumers. Perhaps second-hand versions were more than enough for those who wanted a Model X, and only a Model X.

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Cybertruck

Tesla Cybertruck’s head-scratching trim sold terribly, recall documents reveal

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

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Credit: Tesla

After Tesla decided to build a Rear-Wheel-Drive Cybertruck trim back in 2025, which was void of many features and only featured a small discount.

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

The recall deals with a potentially separating wheel stud and potentially impacts 173 Cybertruck units with the 18-inch steel wheels. The Cybertruck RWD was the only trim level to feature these, and the 173 potentially impacted units represent a portion of the population of pickups. Therefore, it’s not the entire number of RWD Cybertruck sold, but it could show how little interest it gathered.

The NHTSA document states:

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“On affected vehicles, higher severity road perturbations and cornering may strain the stud hole in the wheel rotor, causing cracks to form. If cracking propagates with continued use and strain, the wheel stud could eventually separate from the wheel hub.”

Only 5 percent are expected to be impacted, meaning less than 10 units will have the issue if the NHTSA and Tesla estimates are correct. Nevertheless, the true story here is how terribly the RWD Cybertruck sold.

Tesla ended production and stopped offering the RWD Cybertruck to customers last September. For just $10,000 less than the All-Wheel-Drive trim, Tesla offered the RWD Cybertruck with just one motor, textile seats instead of leather, only 7 speakers instead of 15, no Rear Touchscreen, no Powered Tonneau Cover for the truck bed, and no 120v/240v outlets.

Tesla brings closure to head-scratching Cybertruck trim

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For just $10,000 more, at $79,990, owners could have received all of those premium features, as well as a more capable All-Wheel-Drive powertrain that featured Adaptive Air Suspension. The discount simply was not worth the sacrifices.

Orders were few and far between, and sources told us that when it was offered, sales were extremely tempered because customers could not see the value in this trim level.

Even Tesla’s most loyal supporters thought the offering was kind of a joke, and the $10,000 extra was simply worth it.

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Cybertruck RWD Recall by Joey Klender

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