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Elon Musk was right about Tesla in China, and March registrations prove it

(Credit: @Tesla__Mania/Twitter)

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Elon Musk believes China will be Tesla’s biggest advantage in the long term, and new data from a Chinese automotive organization that tracks vehicle registrations proves the CEO is right.

New data released by the China Automotive Information Net (CAIN) shows that registrations for Tesla surged to 34,635 in March, a new single-month record that virtually propelled the electric automaker into one of the most surprising quarters in company history. The 34,635 cars that Tesla successfully registered to Chinese customers was a near doubling compared to the 18,155 February registrations the automaker recorded just one month prior. Bloomberg also reported that the March 2021 numbers had nearly tripled compared to March 2020 figures when sales were disrupted by the COVID-19 pandemic that halted production at Tesla’s Giga Shanghai production plant for several weeks. The EV Sales Blog shows around 11,280 units sold in China in March 2020.

The record 34,635 cars that were registered in China contributed greatly to Tesla’s overall Q1 delivery and production numbers. Tesla announced on April 2nd that it had produced 180,338 cars and delivered 184,800 of them. This was a strong showing based on Wall Street estimates that pegged the automaker would deliver around 162,000 cars in Q1 2021. This was obviously a low estimate as Tesla managed to outperform the relatively bearish estimates by a considerable margin.

In the big picture, the delivery figures indicate CEO Elon Musk’s predictions regarding China are correct. In a recent interview, Musk claimed that the Chinese market would be one of the most important areas of focus that could contribute to Tesla’s growth. On a global scale, China has already proven to give Tesla plenty of demand while only manufacturing two of the company’s four vehicles in Shanghai. Still, the March figures show that China is more than ready to assist in the automaker’s global surge for dominance in a quickly growing Chinese automotive sector.

“China in the long term will be our biggest market, both where we make the most number of vehicles and where we have the most number of customers,” Musk said. “I’d like to strike an optimistic note, and I’m very confident that the future of China is going to be great and that China is headed towards being the biggest economy in the world and a lot of prosperity in the future.”

Musk’s predictions about China were expected. The automaker’s presence in the country has been electrifying since Tesla started delivering cars to owners in early 2020. Since then, growth has been the word to describe the company’s performance, and the Model 3 and Model Y have been the driving factors. The two vehicles have catered to the typical Chinese car buyer because of their affordability, and the several variants that both models offer match any driving style. The Model 3 has stood the test of time, managing to maintain a Top 3 position in Chinese sales charts since its introduction to the market in January 2020. The only car to dethrone the Model 3 from the top position is the Wuling HongGuang Mini EV, a $4,500 car with a low range and unfavorable performance ratings.

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The Tesla Model Y is leading China’s electric SUV segment by a wide margin

Musk is right, and the numbers prove it. China will undoubtedly drive Tesla into the stratosphere by continuing to contribute to the company’s substantial growth. Although the pandemic slowed 2020’s figures, 2021 is proving to be one of Tesla’s most productive and momentous years to date. The financial figures for Q1 will be revealed during the Q1 2021 Earnings Call that Tesla will hold on April 26th.

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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SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

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SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

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The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

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Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

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Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

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At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

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