News
Tesla stock spikes on China delivery figures, then cools down for no reason
Tesla (NASDAQ: TSLA) stock spiked nearly 3% this morning after positive news from China that effectively debunked rumors of declining sales figures in May. However, the increase in price was short-lived, as the stock dropped back down to the $600 level after opening at $623.01, despite no negative news being reported regarding Tesla this morning.
Earlier today, the Chinese Passenger Car Association (CPCA) reported Tesla delivered a total of 33,463 vehicles in May. Tesla delivered 21,936 domestically after being produced at Tesla’s Giga Shanghai production facility. The remaining 11,527 were exported to other areas, including Europe, where Tesla started shipping vehicles from China in January.
Tesla China sales rise 30% in May, definitively debunks reports of weak demand
The figures released by the CPCA earlier today directly contradict reports from earlier this month, when The Information stated that an internal source familiar with Tesla’s EV sales in China indicated the electric automaker’s orders had slumped significantly in May compared to April. The figures indicated Tesla had only 9,800 orders in May, suggesting a decrease by as much as 50%. The news sent Tesla stock on a steep decline after the report hit mainstream media, who started to aggregate the story as fact.
The report was met with criticism just a few days later by the CPCA’s Secretary General Cui Dongshu, who said (via Global Times):
“Placed orders cannot equal the sales number in one month. Usually, monthly sales are accumulated units of orders over previous months, so the immediate results in May might not truly reflect whether the recently reported accidents have had any real impact on Tesla’s sales.”
Cui suggested that if Tesla were experiencing decreasing order and sales figures, they wouldn’t be identifiable until July or August.
After Tesla shares spiked this morning on the news of the positive delivery figures in China, the surge cooled down. Analyst Gary Black attributed the drop off to two things: Traders buying on the rumor of low delivery figures, and now selling after shares rose when the CPCA released positive news this morning, or the possibility of Bitcoin’s plummet affecting Tesla’s shares.
1/ Traders bought the China rumor; now selling the news.
2/ #btc collapsing again$tsla https://t.co/NQzxzyoQZE— Gary Black (@garyblack00) June 8, 2021
There is a chance that Jerome Guillen, Tesla’s now-former Head of Heavy Trucking, leaving the company could be affecting the price.
Tesla’s rocky road in China
Tesla has had somewhat of a tumultuous relationship in China over the past few months. After growing concerns of security issues due to Tesla’s external cameras, several State-owned businesses and entities banned the company’s cars on their premises in fear of a security breach that could take pictures of potentially sensitive information. Tesla stated that its cabin cameras are not active, and Elon Musk stated that Tesla’s vehicles were not being used to spy on Chinese entities. “If Tesla used cars to spy in China or anywhere, we would get shut down,” Musk said.
In the following months, Tesla would battle numerous reports of brake failures by numerous owners in China. The most public occurrence of this happening was at the Shanghai Auto Show, where a Model 3 owner claimed her brakes failed and led to an accident. Tesla offered to have a third-party company complete testing on the car to determine the cause of the accident. The owner declined this.
Other owners in China have also come out with similar claims, all of them eventually being debunked or disproven in the following days or weeks. In response to the claims, Tesla created a “Special Handling Team” in China to deter and navigate through false narratives related to the company’s products. Tesla said the team would “meet the demands of car owners and strive to satisfy car owners while complying with laws and regulations.”
Tesla Stock
Tesla shares have dropped 14.49% so far in 2021. Interestingly, Tesla has continued its trend of strong financials and delivery and production performances, citing Quarter-over-Quarter growth in both of the company’s Earnings Calls that have taken place this year. In addition, Q1 2021 proved to be Tesla’s biggest quarter yet in terms of production and delivery figures, despite only manufacturing two of its four currently-offered automobiles. The Model S and Model X lines at Tesla’s Fremont production facility were being retooled during the end of 2020 and the beginning of 2021 as the flagship models were being “refreshed.”
At the time of writing, Tesla shares were trading at $601.16.
Disclosure: Joey Klender is a TSLA Shareholder.
News
Tesla FSD fleet is nearing 7 billion total miles, including 2.5 billion city miles
As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles.
Tesla’s Full Self-Driving (Supervised) fleet is closing in on almost 7 billion total miles driven, as per data posted by the company on its official FSD webpage.
These figures hint at the massive scale of data fueling Tesla’s rapid FSD improvements, which have been quite notable as of late.
FSD mileage milestones
As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles. Tesla owner and avid FSD tester Whole Mars Catalog also shared a screenshot indicating that from the nearly 7 billion miles traveled by the FSD fleet, more than 2.5 billion miles were driven inside cities.
City miles are particularly valuable for complex urban scenarios like unprotected turns, pedestrian interactions, and traffic lights. This is also the difference-maker for FSD, as only complex solutions, such as Waymo’s self-driving taxis, operate similarly on inner-city streets. And even then, incidents such as the San Francisco blackouts have proven challenging for sensor-rich vehicles like Waymos.
Tesla’s data edge
Tesla has a number of advantages in the autonomous vehicle sector, one of which is the size of its fleet and the number of vehicles training FSD on real-world roads. Tesla’s nearly 7 billion FSD miles then allow the company to roll out updates that make its vehicles behave like they are being driven by experienced drivers, even if they are operating on their own.
So notable are Tesla’s improvements to FSD that NVIDIA Director of Robotics Jim Fan, after experiencing FSD v14, noted that the system is the first AI that passes what he described as a “Physical Turing Test.”
“Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies,” Fan wrote in a post on X.
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Tesla starts showing how FSD will change lives in Europe
Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.
Tesla has launched Europe’s first public shuttle service using Full Self-Driving (Supervised) in the rural Eifelkreis Bitburg-Prüm region of Germany, demonstrating how the technology can restore independence and mobility for people who struggle with limited transport options.
Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.
Officials see real impact on rural residents
Arzfeld Mayor Johannes Kuhl and District Administrator Andreas Kruppert personally tested the Tesla shuttle service. This allowed them to see just how well FSD navigated winding lanes and rural roads confidently. Kruppert said, “Autonomous driving sounds like science fiction to many, but we simply see here that it works totally well in rural regions too.” Kuhl, for his part, also noted that FSD “feels like a very experienced driver.”
The pilot complements the area’s “Citizen Bus” program, which provides on-demand rides for elderly residents who can no longer drive themselves. Tesla Europe shared a video of a demonstration of the service, highlighting how FSD gives people their freedom back, even in places where public transport is not as prevalent.
What the Ministry for Economic Affairs and Transport says
Rhineland-Palatinate’s Minister Daniela Schmitt supported the project, praising the collaboration that made this “first of its kind in Europe” possible. As per the ministry, the rural rollout for the service shows FSD’s potential beyond major cities, and it delivers tangible benefits like grocery runs, doctor visits, and social connections for isolated residents.
“Reliable and flexible mobility is especially vital in rural areas. With the launch of a shuttle service using self-driving vehicles (FSD supervised) by Tesla in the Eifelkreis Bitburg-Prüm, an innovative pilot project is now getting underway that complements local community bus services. It is the first project of its kind in Europe.
“The result is a real gain for rural mobility: greater accessibility, more flexibility and tangible benefits for everyday life. A strong signal for innovation, cooperation and future-oriented mobility beyond urban centers,” the ministry wrote in a LinkedIn post.
News
Tesla China quietly posts Robotaxi-related job listing
Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.
Tesla has posted a new job listing in Shanghai explicitly tied to its Robotaxi program, fueling speculation that the company is preparing to launch its dedicated autonomous ride-hailing service in China.
As noted in the listing, Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.
Robotaxi-specific role
The listing, which was shared on social media platform X by industry watcher @tslaming, suggested that Tesla China is looking to fill the role urgently. The job listing itself specifically mentions that the person hired for the role will be working on the Low Voltage Hardware team, which would design the circuit boards that would serve as the nervous system of the Robotaxi.
Key tasks for the role, as indicated in the job listing, include collaboration with PCB layout, firmware, mechanical, program management, and validation teams, among other responsibilities. The role is based in Shanghai.
China Robotaxi launch
China represents a massive potential market for robotaxis, with its dense urban centers and supportive policies in select cities. Tesla has limited permission to roll out FSD in the country, though despite this, its vehicles have been hailed as among the best in the market when it comes to autonomous features. So far, at least, it appears that China supports Tesla’s FSD and Robotaxi rollout.
This was hinted at in November, when Tesla brought the Cybercab to the 8th China International Import Expo (CIIE) in Shanghai, marking the first time that the autonomous two-seater was brought to the Asia-Pacific region. The vehicle, despite not having a release date in China, received a significant amount of interest among the event’s attendees.