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Tesla (NASDAQ:TSLA) has made remarkable strides in China’s booming electric vehicle market this past month.
Thanks to substantial discounts, Tesla’s market share significantly expanded in August, nearly doubling its share to 13.2%, up from 7.5% in July. The company booked sales of 64,694 vehicles in China during the month, an impressive feat in a highly competitive market.
One standout success was the China-made Model Y, which, according to the China Passenger Car Association (CPCA) recorded 65,316 deliveries.
Tesla’s aggressive pricing strategy, including multiple price reductions throughout the year, seems to have paid off, making its EVs more accessible to Chinese consumers.
However, it’s worth noting that Tesla introduced a redesigned Model 3 with a starting price that’s 12% higher than that of the previous base model with rear-wheel drive, demonstrating a strategic balance between affordability and premium offerings.
Shares of TSLA reached a weekly high of $257.90 on Tuesday before closing the week down 3.6% to $248.50.
In another part of the globe, multinational automaker Stellantis (NYSE:STLA) is preparing for a significant leap in its battery production capacity. The company plans to raise its battery production capacity to a staggering 400 GWh to meet surging demand for EVs, announced Micky Bly, head of global propulsion systems at Stellantis.
Stellantis has already committed to delivering six gigafactories worldwide, including the recently inaugurated European gigafactory in France. Additional facilities in Germany and Italy are on the horizon, all part of the ACC joint venture with Mercedes (ETR:MBGn) (OTC:MBGYY) and TotalEnergies (EPA:TTEF) (NYSE:TTE).
Furthermore, plans are in motion for three more facilities in the United States and Canada, marking a substantial expansion of Stellantis’ global footprint in the EV space.
In a move to enhance capacity even further, Stellantis is investing 40 million euros ($43 million) in its Battery Technology Center located in Turin’s Mirafiori complex. This center will play a pivotal role in conducting in-house testing and development for EV battery packs, ensuring Stellantis stays at the forefront of EV technology.
Shares of STLA reached a weekly high of $18.34 on Tuesday, with an overall slide of some 0.9% for the week to $18.23.
While Tesla and Stellantis continue to make waves in the EV market, Mullen Automotive (NASDAQ:MULN) is facing a different kind of challenge.
Mullen’s share price experienced a brief surge in early trading Friday after the company announced its appeal against Nasdaq’s decision to delist the company due to a fall below the $1 mark. This appeal could potentially grant Mullen a lifeline of up to 180 days to rectify its stock price and meet Nasdaq’s listing requirements.
Mullen’s journey to compliance has been tumultuous, including a 10x stock dilution to raise funds for a production ramp, as well as two reverse stock splits in one year to boost share value. The first was a 1-for-25 reverse split back in May, and a 1-for-9 reverse split last month.
Given the historical price movement over the past five years, predicting a significant recovery in Mullen’s share price remains challenging. However, if Nasdaq’s committee grants another extension, an artificial increase in the share price could be expected.
CEO David Michery’s strategic decisions will be critical in navigating these issues. Another reverse split could offer a temporary boost, but the long-term sustainability of Mullen’s stock performance hinges on its ability to deliver on its EV production promises.
Shares of MULN reached a weekly high of $0.5377 Tuesday afternoon, and from there dropped 22% to close Friday trading at $0.4193/sh. The stock’s weekly loss overall came to 18.9%.
