Musk’s Tesla registers 14,000 China insurance policies in first week

In China, Tesla’s car insurance registrations have been on the rise in recent weeks due to the increasing number of deliveries of the updated Model 3, as well as the company’s apparent readiness to raise the price of all Model Y car trims in China in upcoming weeks, which suggests the company’s profit margins may have peaked in the third quarter.

Tesla Inc, owned by Elon Musk, had its shares dip early on Tuesday morning.

In a report on Investor’s Business Daily, data obtained by CnEVPost shows that, for the week ending November 5, 14,000 Tesla insurance policies were registered in China, an increase of 30% over the previous week’s total of 10,800 policies, which was reported by CnEVPost prior to its announcement.

It marks the first time that these figures cover a full week of deliveries since Tesla began shipping its latest Model 3s. It is not yet possible to separate the Model 3 registrations from those of the Model Y registrations in the figures.

It is still important to note that Tesla insurance registrations in China remain below Q3 levels, despite the fact that the company is looking to reach its 2023 car delivery target of 1.8 million units with record Q4 registration rates.

CPCA (China Passenger Car Association) issued figures on Thursday that showed Tesla sold 72,115 cars built in China in October, a 0.57% increase over the previous year when 71,704 units were sold, but a 2.6% decline from September when 74,073 cars were sold.

Several Tesla salesmen in China have confirmed to local media outlets that there will be an increase in prices for the lower-end Model Y trims within the next few months.

The Model Y Performance trim of the Model Y was raised by $1,920 at the end of October as a result of Tesla’s latest price increase. Investors might take this as an indication that price reductions that are most significant have already been made and that profit margins will not drop below the levels of Q3.

On Tuesday during trading, Tesla’s stock dropped by 1.5% to reach 216.08, down from 219.27 on Monday. TSLA closed Monday at 219.27, a decrease of 0.3% from its previous close.