Tesla Motors Inc (TSLA) Shares Recover After Big Sell-Off; Investors Nerves Calm On China, For Now

It’s been a volatile few days for Tesla Motors Inc. (Nasdaq:TSLA). After its shares were battered Monday, along with those of other luxury carmakers, investors shed their fears of an imminent China meltdown and Tesla Motors' stock gained 4.67 percent to $264.82, recovering most of what it lost in the week’s first session.

Luxury automakers who all have China in their sights for future growth might still be in for a rough ride if wealthy Chinese consumers in the world’s largest auto market pull back on new-car sales. Tesla shares are nearly flat for the past 30 days but up about 19 percent for the year.

The next expected catalyst for the company will come Aug. 5 during its second-quarter earnings announcement.

Tesla management will outline progress in constructing its massive “Gigafactory” battery production facility in Nevada and give signals on the prospect of hitting its goal of 55,000 unit sales for the year. CEO Elon Musk will undoubtedly be asked during the company’s second-quarter conference call next week how a China slowdown would affect future sales projections.

Shares of other luxury carmakers heavily exposed to China’s economy also rebounded, including Volkswagen AG (FRA:VOW), which gained 3.34 percent to 191.80 euros ($173.44). Bayerische Motoren Werke AG (FRA:BMW) gained 1.84 percent to 88.91 euros ($81.88).

Ford Motor Co. boss Mark Fields said during Ford’s second-quarter conference call Tuesday morning that his company reduced production in the Asia-Pacific region in recent months in response to China’s slowdown.

It’s clear we’ve seen a market slowdown [in China],” he told analysts. “[But] we have to put this market in perspective. It’s the biggest market in the world right now. … There are fluctuations in a market like this, but we’re going to work through it.”

Ford Motor Co. (NYSE:F) shares jumped 1.78 percent to $14.84 after it posted its best quarterly profit in 15 years. Net income came in at $1.9 billion, or 47 cents per share, soundly beating estimates. The company also expects better performance in the next six months.