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Tesla’s annual report showed that the American automobile maker was able to earn three times more last year to around $1.06 billion from earning only around $318 million in 2015. This would make the country Tesla’s second largest market next to the United States.

This is positive news for the company’s shareholders as Elon Musk stated in the past investor reports that China is set to be one of the company’s largest markets in the coming years.

The Palo Alto-based company stated that the weak sales of the company back in 2015 in China was driven by problems including a mass resignation of Tesla’s sales team in China and the small number of charging station it has built since Tesla’s launch in the country back in 2014. On top of these issues, a highly publicized lawsuit was filed against the company after a 23-year old died in a car collision stating that the Model S autopilot feature is to blame for the crash last year.

Despite all of these, the company reported sales three times higher than that of 2015 and is set to overtake America as its top market by 2020. China was able to outrun the United States last year with 1.45% worth of market shares reportedly while the United States held only 0.8% and Europe 1.3%.

According to analysts, the company has still a long way to go should it top other local companies in the countries as more local Chinese companies were coming up with their own version of electric vehicles including the Geely Emgrand 7 which has reportedly sold more than 6,000 in December 2016 alone while Tesla was able to sell only around 100 in the same period.

TSLA Stock Direction

Before the start of 2017, Tesla’s stock declined after the company reported lower than expected numbers in their total deliveries for 2016 reporting only 76,230 from initially forecasting a total number of 80,000 deliveries for the whole year. The company then justified that dealers and vehicles whose paperwork was not completed were not included in the total cut and stated that the rest of the deliveries will be completed during the first quarter of the year.

Shares of the company spiked at the beginning of the year following Tesla’s launch of the Gigafactory in Nevada which would be manufacturing the batteries of the much-awaited Model 3 vehicle. The Giga factory is also set to create more than 20,000 jobs in the area and is already hiring more than 6,000 in the factory alone. The Giga factory is also a partnership with Panasonic as the company is receiving a higher volume of orders for their Model 3 unit.

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Tesla then launched later in Dubai and has started receiving pre-orders for the Model S and X and has started the construction of the charging stations all over Abu Dhabi. Tesla also announced that it has partnered with the Dubai Taxi Corporation who is set to add around 200 Tesla vehicles to its current fleet.

Just a few weeks ago, Tesla shares recorded a 52-week high where the stock rallied by as much as 4% after the company made updates regarding its Model 3 sedan production. The rally then showed a jump of around 100 points from its share price back in December at around the $181 price level.

The gains from the rally were then erased after the company reported a mixed earnings report that disappointed investors. Although Tesla was able to beat analysts expectations for their revenue, it did report a weaker earnings per share sending its shares 1.4% during the day’s session but slightly recovered during the after-hours trading.

Tesla shares recently rallied for the past three consecutive sessions on updates regarding the Model 3 production and the rise in their sales in China. 

Further 2017 Plans

Aside from the further development of the Model 3 sedan, the company also plans to make further utilization of SolarCity which was acquired by CEO Elon Musk last year.

Musk also announced back in 2016 that the Solar Roof will be sold this year in line with his plans to change the way people power their homes

Elon Musk also intends to work on Tesla’s autopilot system more this year despite a few setbacks last year and is planning to open more factories in the U.S. this year.

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