Tesla Gains in Premarket Trading On Bounce In China Sales

Tesla (NASDAQ:TSLA) shares rose more than 3% in premarket trading on Tuesday following an uptick in the sales of its vehicles made in China.

The company has been having a tough time in China, facing scrutiny from both regulators and consumers, but a spring in sales brings reprieve to the company and the bulls in the stock.

Tesla sold 33,463 China-made electric vehicles in May, including 21,936 units in local sales and exports of 11,527. Domestic sales were 11,671 units in April.

The total jump in sales was 29% from April, data from the China Passenger Car Association showed.

China is Tesla’s second-largest market, representing almost one third of the carmaker’s total sales. For Tesla, China is not only a production hub for its cars but also a major source of several inputs that go into making its models elsewhere.

The electric vehicle maker faces competition in China from a joint venture of General Motors (NYSE:GM) and SAIC Motor (SS:600104) and new players such as Nio (NYSE:NIO) and Xpeng.