Tesla Inc. (NASDAQ:TSLA) continued to grow in June with record registration for electric cars in the Chinese market as the impact of COVID-19 starts to ease.

Tesla adds 32% EV registrations in June

According to data from China Automotive Information Net, the company registered around 14,976 China-manufactured vehicles in June. This represents an increase of 32% from the number of vehicles registered in May and will be the highest monthly registration so far for Tesla. The company has been ramping up production at its Shanghai mega plant after it commenced deliveries from the factory early this year. Most of the car registrations in China are from the Shanghai factory, which is the first to produce Tesla’s EVs outside the US. The plant produces Model 3 sedans at the plant, and there are plans to assemble Model Y SUVs at the site.

The Chinese auto market seems to be recovering, albeit slowly from a 2-year dip, and Tesla has benefitted as wealthier consumers are attracted to its cars. According to the China Passenger Car Association, Tesla’s sales are approaching a quarter of the total electric vehicle market in the country. This makes it challenging for several startups to get their boost their businesses. Through June, Tesla had registered around 49,761 electric vehicles from Tesla.

Tesla to produce 4 million cars in 2025

According to Piper Sandler’s Alexander Potter, the Palo Alto-based car manufacturer will deliver around 4 million cars in 2025, grabbing around 7% of the Chinese market. The Analyst raised his price target for Tesla stock to $2,322, which signifies a 50% upside for the stock in the next 12 months. Recently Tesla’s market cap soared and surpassed Japanese carmaker Toyota Motor Corp as the most valuable car manufacturer globally.

Competition in China continues to grow with local electric vehicle rival INO Inc. receive a capital injection from the government as well as a new credit lime from six lenders. Equally, other global peers such as Mercedes-Benz manufacture Daimler AG and BMW AG are also bringing new models.

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