TLDR
- Tesla stock jumped 3.2% Friday to $410.01 after falling 8% for the week, ending a tough stretch where shares dropped 12 of the past 17 trading sessions.
- The electric vehicle maker’s weekly decline came from broader tech selloff rather than company-specific news, with the Nasdaq down almost 4% through Thursday.
- Tesla’s Shanghai factory delivered 69,129 units in January, up 9% year-over-year, ranking third behind BYD and Geely in China’s competitive EV market.
- China reinstated a 5% tax on new energy vehicle purchases starting January 1, ending more than a decade of exemptions as government support for EVs decreases.
- New Chinese regulations require all cars sold after January 1, 2027 to have mechanical door releases, forcing Tesla to redesign its signature flush door handles.
Tesla stock climbed 3.2% to $410.01 in midday trading Friday. The move broke a rough four-day stretch for the electric vehicle maker.
Coming into Friday, shares were down almost 8% for the week. The stock had fallen on three of the past four days and 12 of the past 17 trading sessions.
The S&P 500 rose 1.1% while the Dow Jones Industrial Average gained 1.5%. Tesla’s Friday rally mirrored the broader market recovery.
No Tesla-specific news drove Friday’s gains. Wall Street analysts didn’t issue upgrades or change price targets.
The week’s losses came from the broader tech selloff. The tech-heavy Nasdaq Composite fell almost 4% through Thursday trading.
Tech Sector Weakness Weighs on Tesla
Alphabet stock declined after reporting earnings earlier in the week. Amazon.com shares dropped Friday after Thursday’s earnings report.
Software stocks also fell on concerns about AI disrupting their business models. Tesla trades like a tech stock despite being an automaker.
Congress held a hearing on autonomous vehicle standards earlier in the week. Representatives from Tesla and Alphabet’s Waymo testified about self-driving technology rollout plans.
Tesla launched a robo-taxi service in Austin, Texas in June. The company competes directly with Waymo in that market.
The EV pioneer plans to operate in nine cities by midyear. Self-driving technology remains central to Tesla’s growth strategy.
China Market Shows Mixed Signals
Tesla’s Shanghai factory delivered 69,129 units in January. That’s up 9% from 63,238 units in January 2025.
The China Passenger Car Association released the data Wednesday. Tesla ranked third among Chinese EV manufacturers.
BYD led with 205,518 shipments. Geely came in second with 124,252 units.
Tesla’s January figures reflect total shipments from Shanghai. The factory produces Model 3 and Model Y vehicles for domestic and foreign markets.
New registrations for Tesla vehicles in Europe rose slightly in January. The Shanghai factory supplies both European and Asia-Pacific markets.
China’s new energy vehicle sales grew only 1% year-over-year in January. This marked the fourth straight month of slowing growth.
Beijing reinstated a 5% tax on new energy vehicle purchases from January 1. The government had exempted EVs from the full 10% tax for over a decade.
Tesla faces intense price competition in China. The base Model 3 costs around 235,500 yuan ($33,943).
BYD’s base Seal model costs around 79,800 yuan. That’s nearly three times cheaper than Tesla’s entry model.
Tesla now offers five-year 0% interest loans through February 28. The company also provides seven-year ultra-low interest rate loans.
China’s Ministry of Industry and Information Technology announced new door handle regulations Monday. Starting January 1, 2027, all cars must have interior and exterior mechanical releases.
The rules follow incidents where EV occupants couldn’t escape during fires. Power failures prevented door mechanisms from working.
Tesla’s flush door handles became a signature design feature. The company has until 2027 to comply with the new mechanical release requirements.
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