Tesla's China Numbers Might Be Worse Than First Blush

Confusion has reigned in recent Tesla trading. There has been confusion about Tesla driving features and a fatal Texas crash; the true impact of zero-emission credit sales; and now over Tesla’s April sales figures in China. One thing is certain: Investors hate confusion.

Tesla stock fell 1.9% Tuesday, but started out the day significantly lower, making the drop actually a small win for Tesla investors. The S&P 500 and Dow Jones Industrial Average fell 0.9% and 1.4%, respectively.

Even though the stock rallied through the day, Tesla’s China sales numbers might be worse than investors initially assumed. Chinese auto industry data show Tesla sold roughly 26,000 EVs in April, down from about 35,000 in March. It’s a decline amid growth for Tesla’s Chinese EV competitors.

The confusion is over exports. Tesla also exported about 14,000 cars from China in April, according to the same industry association. So the question investors started asking analysts is: Did Tesla produce 40,000 cars in China in April, meaning the company sold 26,000 in China and exported an additional 14,000? Or did Tesla make 26,000 cars overall in China, selling 12,000 of those in China and exporting the rest?

Tesla isn’t helping untangle the numbers. The company didn’t respond to a request for comment.

“We’ve been exchanging emails with confused clients all morning,” wrote Piper Sandler Alex Potter in a Tuesday report. His original interpretation of the numbers was that Tesla sold about 26,000 vehicles in China and exported an additional 14,000, but acknowledged the possibility that Tesla only sold about 12,000 in the country and exported the rest of the 26,000.

That would mean Tesla sales declined by nearly two-thirds month to month. But even if the answer is only 12,000 Chinese sales in April, Potter isn’t worried.

“Don’t stare too closely at these monthly numbers,” wrote the analyst. “We prefer to examine Tesla’s market share on a trailing [three-]month basis.”

He also points out that the Tesla plant in Shanghai was closed for two weeks in the first quarter, which might have sacrificed 10,000 or so vehicles. What’s more, Tesla tends to ship most of its units in the final month of the quarter.

GLJ analyst Gordon Johnson isn’t as sanguine and believes the 14,000 deliveries are part of the 26,000 figure. For him, that means Tesla has a market share problem in the world’s largest market for EVs.

Potter and Johnson’s take on the April data aligns with their ratings. Potter rates shares Buy and has $1,200 price target for the stock, the highest on Wall Street. His target price values the company at more than $1 trillion. Johnson rates shares Sell and has the lowest target price on the Street at $67 a share. His target values the company at about $80 billion, or roughly what General Motors (GM) stock is worth.

The entire April report is, frankly, confusing, adding to existing uncertainty surrounding Tesla stock.

Tesla’s driver-assistance function was initially implicated in a deadly Texas crash in April, but it looks as if the system wasn’t turned on, according to preliminary findings by the National Transportation Safety Board. In other words, that would mean the human driver crashed the car, although investors will have to wait to see the NTSB’s final report.

Tesla also reported better-than-expected first-quarter numbers in late April. The numbers, however, were boosted by Bitcoin trading profits and bigger-than-expected zero-emission credit sales—which Tesla earns for producing more than its fair share of no-emission cars and then sells to other auto makers that don’t meet zero-emission quotas.

All the confusion has weighed on shares. Tesla stock is down about 9% over the past month. The Nasdaq Composite is off 4% over the same span.

Regardless of the final interpretation, Tesla’s April sales in China dropped sequentially, while other EV makers’ deliveries rose. That isn’t what Tesla bulls want to see, and it’s another thing to worry about in coming months.

It’s go time for the highest-stakes mission at NASA in more than 50 years.

On April 1, the agency is set to launch four astronauts around the moon, the deepest human spaceflight since the final Apollo lunar landing in 1972.

The launch window for Artemis II , as the mission is called, opens at 6:24 p.m. ET.

National Aeronautics and Space Administration teams have been preparing the vehicles to depart from Florida’s Kennedy Space Center on the planned roughly 10-day trip. Crew members have trained for years for this moment.

Reid Wiseman, the NASA astronaut serving as mission commander, said he doesn’t fear taking the voyage. A widower, he does worry at times about what he is putting his daughters through.

“I could have a very comfortable life for them,” Wiseman said in an interview last September.

“But I’m also a human, and I see the spirit in their eyes that is burning in my soul too. And so we’ve just got to never stop going.”

Wiseman’s crewmates on Artemis II are NASA’s Victor Glover and Christina Koch, as well as Canadian Space Agency astronaut Jeremy Hansen.

Photo: NASA’s Artemis II SLS rocket and Orion spacecraft being rolled out at night. Miguel J. Rodriguez Carrillo/Getty Images

What are the goals for Artemis II?

The biggest one: Safely fly the crew on vehicles that have never carried astronauts before.

The towering Space Launch System rocket has the job of lofting a vehicle called Orion into space and on its way to the moon.

Orion is designed to carry the crew around the moon and back. Myriad systems on the ship—life support, communications, navigation—will be tested with the astronauts on board.

SLS and Orion don’t have much flight experience. The vehicles last flew in 2022, when the agency completed its uncrewed Artemis I mission .

How is the mission expected to unfold?

Artemis II will begin when SLS takes off from a launchpad in Florida with Orion stacked on top of it.

The so-called upper stage of SLS will later separate from the main part of the rocket with Orion attached, and use its engine to set up the latter vehicle for a push to the moon.

After Orion separates from the upper stage, it will conduct what is called a translunar injection—the engine firing that commits Orion to soaring out to the moon. It will fly to the moon over the course of a few days and travel around its far side.

Orion will face a tough return home after speeding through space. As it hits Earth’s atmosphere, Orion will be flying at 25,000 miles an hour and face temperatures of 5,000 degrees as it slows down. The capsule is designed to land under parachutes in the Pacific Ocean, not far from San Diego.

Water photo: NASA’s Orion capsule after its splash-down in the Pacific Ocean in 2022 for the Artemis I mission. Mario Tama/Press Pool

Is it possible Artemis II will be delayed?

Yes.

For safety reasons, the agency won’t launch if certain tough weather conditions roll through the Cape Canaveral, Fla., area. Delays caused by technical problems are possible, too. NASA has other dates identified for the mission if it doesn’t begin April 1.

Who are the astronauts flying on Artemis II?

The crew will be led by Wiseman, a retired Navy pilot who completed military deployments before joining NASA’s astronaut corps. He traveled to the International Space Station in 2014.

Two other astronauts will represent NASA during the mission: Glover, an experienced Navy pilot, and Koch, who began her career as an electrical engineer for the agency and once spent a year at a research station in the South Pole. Both have traveled to the space station before.

Hansen is a military pilot who joined Canada’s astronaut corps in 2009. He will be making his first trip to space.

Koch’s participation in Artemis II will mark the first time a woman has flown beyond orbits near Earth. Glover and Hansen will be the first African-American and non-American astronauts, respectively, to do the same.

What will the astronauts do during the flight?

The astronauts will evaluate how Orion flies, practice emergency procedures and capture images of the far side of the moon for scientific and exploration purposes (they may become the first humans to see parts of the far side of the lunar surface). Health-tracking projects of the astronauts are designed to inform future missions.

Those efforts will play out in Orion’s crew module, which has about two minivans worth of living area.

On board, the astronauts will spend about 30 minutes a day exercising, using a device that allows them to do dead lifts, rowing and more. Sleep will come in eight-hour stretches in hammocks.

There is a custom-made warmer for meals, with beef brisket and veggie quiche on the menu.

Each astronaut is permitted two flavored beverages a day, including coffee. The crew will hold one hourlong shared meal each day.

The Universal Waste Management System—that’s the toilet—uses air flow to pull fluid and solid waste away into containers.

What happens after Artemis II?

Assuming it goes well, NASA will march on to Artemis III, scheduled for next year. During that operation, NASA plans to launch Orion with crew members on board and have the ship practice docking with lunar-lander vehicles that Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin have been developing. The rendezvous operations will occur relatively close to Earth.

NASA hopes that its contractors and the agency itself are ready to attempt one or more lunar landing missions in 2028. Many current and former spaceflight officials are skeptical that timeline is feasible.

Tesla’s China Numbers Might Be Worse Than First Blush

After a day of confusion saw the company’s stock fall.

The lunar flyby would be the deepest humans have traveled in space in decades.