JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Investment Advisors

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TSLA China Update: Q1 Import and Registration Data

Investment Advisors, JL Warren Capital

Junheng Li

Equity Bottom-Up

<p>In April, only 94 <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1">Tesla Motors (TSLA US)</a> cars were imported and 2,658 were registered in China.  The average selling price for the April imported was $52,932 USD, down 43% yoy but up 4% qoq.  The lower ASP indicates that the majority of imported TSLAs were Model 3.   In total, there were only 170 imported cars cleared by China Customs in April.  TSLA accounted for ~55%, vs.  historically 95%+ of total pure EV imports each month.  The rest pure EV models are <a href="https://www.smartkarma.com/entities/bayerische-motoren-werke-ag" target="_blank" data-smartkarma-citation="entities:21591:1">Bayerische Motoren Werke Ag (BMW GR)</a> i3, <a href="https://www.smartkarma.com/entities/volkswagen-ag" target="_blank" data-smartkarma-citation="entities:21738:1">Volkswagen (VOW GR)</a>  Golf, <a href="https://www.smartkarma.com/entities/tata-motors-ltd-spon-adr" target="_blank" data-smartkarma-citation="entities:12763:1">Tata Motors Ltd Spon Adr (TTM US)</a> Jaguar I-PACE, all of which are of single/double digits in volume. The extremely low import volume could be caused by the departure from the US and transit logistics.</p>

In April, only 94 Tesla Motors (TSLA US) cars were imported and 2,658 were registered in China.  The average selling price for the April imported was $52,932 USD, down 43% yoy but up 4% qoq.  The lower ASP indicates that the majority of imported TSLAs were Model 3.   In total, there were only 170 imported cars cleared by China Customs in April.  TSLA accounted for ~55%, vs.  historically 95%+ of total pure EV imports each month.  The rest pure EV models are Bayerische Motoren Werke Ag (BMW GR) i3, Volkswagen (VOW GR)  Golf, Tata Motors Ltd Spon Adr (TTM US) Jaguar I-PACE, all of which are of single/double digits in volume. The extremely low import volume could be caused by the departure from the US and transit logistics.

TSLA China Update: April Import and Registration Data