Tesla rebounds as China sales soar

Tesla Soar
Tesla Soar

Tesla shares rebounded Friday after the carmaker posted record China sales, somewhat offsetting disappointing fourth-quarter delivery figures.

Tesla shifted 657,000 EVs in China last year, an 8.8% annual increase that included a 12.8% jump in December shipments. China now accounts for around 36.7% of its global sales, making it the second-largest market for the Austin-based group behind the U.S. Tesla shares were last marked 4% higher, trading at $394.05 each.

Manufacturing activity hit the highest levels in nine months over December, according to the benchmark survey from the Institute for Supply Management, suggesting solid economic momentum into the end of the year. The ISM’s headline reading of 49.3 topped forecasts but still came in under the 50-point mark that separates growth from contraction. The prices paid index jumped more than 2 points to 52.5, suggesting pressures continue to linger even as growth stalls.

Stocks were little changed following the data release, with the S&P 500 last marked 33 points, or 0.56% higher, and the Dow up 145 points. President Joe Biden formally blocked Japan’s Nippon Steel from buying U.S. Steel in a $14 billion deal citing national security concerns. “It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry,” Biden said in a statement.

As a result, U.S. Steel shares were marked 7.7% lower in premarket trading to indicate an opening bell price of $30.10 each. Boeing, one of the worst Dow performers of 2024, saw its shares extend their slide in early trading after the U.S. Federal Aviation Administration announced it would continue its oversight of the planemaker indefinitely.

China boosts Tesla sales significantly

The FAA’s decision follows last year’s door panel blowout on an Alaska Airlines flight and aims to enforce a “fundamental cultural shift” at Boeing. Boeing shares were marked 0.84% lower in premarket trading, indicating an opening bell price of $170.43 each. The S&P 500 ended lower on Thursday, extending its losing streak to five sessions, the longest since April.

Stronger-than-expected readings on manufacturing activity triggered more selling in Treasury yields, taking benchmark 10-year notes to 4.551% in overnight trading. The U.S. dollar index also rose to its highest levels in more than two years. President-elect Donald Trump will be closely tracking efforts to reelect Louisiana Republican Mike Johnson as House Speaker for the newly convened Congress.

Wall Street will look to a broader reading of December manufacturing activity later today from the Institute for Supply Management. U.S. equity futures suggest modest opening bell gains for each of the three benchmarks, but intraday levels hint that markets may swing in and out of positive territory throughout the session. Contracts tied to the S&P 500 suggest a 14-point opening bell gain, while those linked to the Dow are priced for an 80-point advance.

Overnight, European markets faced slight declines amidst concerns for the near-term growth of the economic bloc, with the Stoxx 600 benchmark falling 0.26% in Frankfurt. In Asia, Chinese stocks continued their longest weekly decline in two years, struggling from concerns over the effectiveness of government plans to support the economy. In the bond market, benchmark 10-year government yields fell to a record low below 1.6%, while the yuan slipped below the 7.3 mark against the dollar for the first time in over a year.

Adria Woodman

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