Tesla, Inc. (NASDAQ: TSLA) shares rose in premarket trading on Tuesday following nearly a 9% decline in the previous two sessions.
What Happened: New registration for Tesla vehicles in China came in at 16,700 units for the week ended June 25, CnEVPost reported, citing a post by rival domestic EV startup Li Auto, Inc. (NASDAQ: LI). This represented an acceleration from the previous two weeks' 164,000 units and 14,500 units.
Among the luxury vehicle category, Tesla's number compares to 17,500 units each for Volkswagen AG's (OTC: VWAGY) Audi, BMW AG (OTC: BWMYY), and Mercedes Benz Group AG (OTC: MBGAF).
Insurance registrations for the vehicles of domestic upstarts Nio, Inc. (NASDAQ: NIO), XPeng, Inc.
(NYSE: XPEV), and Li Auto were at 7,500 units, 3,200 units, and 2,600 units, respectively.
Tesla announced an insurance subsidy of 8,000 yuan ($1,110) for consumers who take delivery of the rear-wheel drive version of Model 3 cars this month, CnEVPost said.
On June 16, Tesla announced that Chinese consumers who purchase and take delivery of an already produced rear-wheel drive version of the Model 3 this month will receive an insurance subsidy of RMB 8,000 ($1,110).
For the period between June 1 and June 25, insurance registration for Tesla vehicles was at 57,300 units.
Why It's Important: Tesla is due to announce its second-quarter deliveries, likely on July 2. In the first quarter ended March 30, the company delivered 422,875 units.
Thanks to generous promotional measures, the Elon Musk-led company is expected to report sales ahead of the current consensus. Future Fund's Gary Black said he expects record second-quarter deliveries of 450,000 units, slightly ahead of the consensus estimate of 448,000 units.
On the first-quarter earnings call, Musk said he is comfortable with a full-year 2023 deliveries estimate of 1.8 million units.
In premarket trading on Tuesday, Tesla rose 0.69% at $242.72, according to Benzinga Pro data.