Tesla (TSLA) continues to make significant strides in the Chinese market, with insurance registrations for its vehicles on the rise. The data reported by CnEVPost reveals that Tesla's insurance registrations in China reached 18,500, a 1% increase from the previous week's figure of 18,300. These numbers mark the eighth consecutive week since the launch of Tesla's revamped Model 3 in China. Although the breakdown between Model 3 and Model Y registrations is currently unavailable, the overall trend is promising.

Tesla has set its sights on ambitious targets for 2023, aiming to deliver 1.8 million vehicles globally. With China emerging as a bright spot in Q4, Tesla's insurance registrations in the country have seen a remarkable 17% surge compared to the same period in Q3. Moreover, the total number of China registrations in Q4 is also 10% higher than the same point in Q2 when Tesla achieved a record-breaking 156,676 vehicle deliveries in China. Currently, Tesla is just 6,000 registrations shy of its Q2 milestone.

The consistent surge of weekly registrations in China, surpassing 18,000 for two consecutive weeks, coincided with Tesla China's announcement that it had sold out of the Model Y for the entirety of 2023, specifically referring to the standard range version of the vehicle. The Model Y has proven to be the most sought-after model in Tesla's lineup, further solidifying the company's position in the Chinese electric vehicle (EV) market.

In response to intensifying competition in China, Tesla has raised prices for certain Model Y trims but has also introduced a $1,127 insurance subsidy for base-trim Model 3 and Model Y vehicles in inventory until year-end. This move, coupled with low-rate loans to stimulate demand, highlights Tesla's commitment to maintaining its strong presence in the Chinese EV market.

Tesla's success in China has prompted rival companies like BYD to ramp up their efforts, offering discounts on various models in a bid to achieve their own ambitious sales targets. BYD, backed by Warren Buffett, aims to sell 3 million EVs, including plug-in hybrids, in 2023. The company's recent discount offers may enable them to surpass Tesla in fully battery electric vehicle (BEV) sales for Q4, potentially securing the BEV crown.

Despite an initial dip in October following worse-than-expected Q3 earnings and revenue, Tesla has been steadily regaining traction in the stock market. In December, TSLA has already risen by 5% and is currently trading at 254.21. The company's stock is building momentum as it forms the right side of a double-bottom base, with a potential buy point at 278.98, according to MarketSmith analysis.

As Tesla aims to report its Q4 deliveries in early January, several Wall Street analysts have adjusted their delivery estimates. The current consensus stands at 473,000 deliveries in Q4, with Piper Sandler predicting 507,000 deliveries in the same period and a total of 1.83 million deliveries in 2023. RBC Capital, however, revised its Q4 estimate to 456,000 deliveries. Despite potential variations in estimates, analysts anticipate a record-setting Q4 for Tesla.

With its consistent growth in China and its ambitious targets for 2023, Tesla remains at the forefront of the global EV market. As the company continues to expand its vehicle offerings and strengthen its presence in key markets, it is poised for a promising future in the electric mobility industry.