Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Tesla share price on watch as Q2 production report looms

The automaker faces issues in China as its preliminary Q2 production and delivery data release looms.

The automaker faces issues in China as its preliminary Q2 production and delivery data release looms. Source: Bloomberg

Tesla on watch following Chinese recall

Electric vehicle giant Tesla (ticker: TLSA) often has a habit of defying the traditional rules of finance.

Over the weekend – Australian time – news started to trickle out that the automaker was facing a substantial recall, of some of its 285,000 vehicles in China.

As the company’s presence in places like North America mature, much hope has been anchored to countries like China as a means of supporting Tesla’s massive ambitions.

In a release from China’s State Administration for Market Regulation (SAMR) dated June 26, it was revealed that Tesla had informed the regulator that a number of its Chinese vehicles would have to be recalled.

The recall relates to issues concerning Tesla's 'active cruise function', it was noted in a statement from the SAMR.

Specifically, from Tesla's Beijing operations, 35,665 imported Model 3's – that were produced between January 12, 2019 and November 27, 2019 would have to be recalled.

More significantly however, from the company's Shanghai operations, 211,256 domestic Model 3's – that were produced between December 19, 2019 to June 7, 2021, would have to be recalled. In addition to that, some 38,5999 Model Y's – Tesla's high margin luxury model – were also being recalled.

Mind you, this isn’t your typical recall. Rather, Tesla said it would make use of OTA (over the air technology), to ‘upgrade the active cruise control software for vehicles within the scope of the recall for free, and users can complete the software upgrade without going to the store.’

The company said it would contact customers whose vehicles could not be upgraded through the use of OTA technology via the Tesla Service Centre.

The potential for Tesla to ‘beam’ an update to its impacted vehicles potentially explains why the stock moved on Monday. No, it didn’t crash, rather TSLA finished out the session up 2.51% at the $688.72 per share mark. Over the last month, the stock is up 10% as second quarter delivery and production data looms.

Trade stocks like Tesla long and short with IG today

Create an IG account or log in to your existing account to get started now

Q2 delivery numbers fast approach

This all comes as the automaker is set to report its preliminary Q2 production and delivery figures – typically released during the first week of the month of the quarterly earnings report.

In the prior quarter Tesla produced ~102 thousand vehicles, made up of ~15.3 thousand Model S/X’s and ~87.2 thousand Model 3/Y’s. Total deliveries, by comparison, came in at ~88.4 thousand.

The company has said that it expects to grow its 'manufacturing capacity as quickly as possible', with the expectation to achieve a 50% average annual growth in vehicle deliveries in the near-term.

Expectations are as such elevated, with the stock trading close to 700x earnings. This is despite the fact that Tesla continues to struggle with profitability, save for the sale of regulatory credits and its foray into the world of cryptocurrencies, both pursuits, which have proven highly lucrative for the automaker. The production of vehicles however, has been a trickier affair.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.