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Tesla Has Strong November in China Ahead of Gigafactory Opening

New vehicle registrations rise 14-fold in November in China from a year earlier.
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Tesla  (TSLA) - Get Tesla Inc. Report shares are on a roll, hitting new all-time highs on Thursday and expected to do the same Friday thanks in part to strong registrations in China ahead of the opening of the company's multibillion-dollar Shanghai Gigafactory.

New electric vehicle registrations jumped by 14-fold in November, according to Bloomberg, climbing to a five-month high of 5,597 vehicles, compared with 393 registrations a year ago.

Tesla shares had been under pressure in the U.S. due to fears that China would raise tariffs on U.S.-made cars in December amid an ongoing trade war, and those fears may have aided in the strong month of sales as customers wanted to get their vehicles before costs rise.

Argus Research analyst Bill Selesky told MarketWatch that some investors see the potential for margins in China to be above the company’s current average of about 25%, making success in China an even more attractive outcome for investors.

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Tesla hit an all-time high Thursday, ending the day up 2.77% to $404.04. The stock was fell 0.5% to $402.12 Friday morning. The stock has been on a tear since October when the electric vehicle maker reported a surprise profit in the third quarter.

The recent run gives Tesla a 21% year-to-date gain, and a nearly 70% increase from the 2019 low below $180 that the shares hit in June.

Tesla is scheduled to release its fourth-quarter results on Jan. 28 with analysts expecting the company to report earnings of $1.40 a share on revenue of $6.86 billion.