Tesla shares slipped about 0.6% to $365.46 on Thursday as China's vehicle surplus intensified pressure on the electric-vehicle maker. China can build nearly twice as many vehicles as its domestic market absorbs, pushing excess supply into overseas markets and threatening pricing power far beyond China. A Sinopec researcher forecast that electric vehicles could capture 75% to 80% of Chinese auto sales by 2030, up from 65% in July. Tesla delivered 480,126 vehicles worldwide in the second quarter, including 467,762 Model 3 and Model Y vehicles, while automotive gross margin was 16.3%, capital expenditures hit $5.8 billion and free cash flow was negative by roughly $1.1 billion. The squeeze matters because Tesla's automobiles still fund its expensive autonomy and robotics ambitions, and its $365.46 share price stands 9.51% above its $333.73 GF Value.
Tesla IncChina's vehicle overcapacity pushes excess supply abroad, threatening Tesla's global pricing power and margins.
China Petroleum & Chemical Corp Class A
Sinopec Oilfield Service Corp
