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Tesla China Sales Triple in August After Factory Upgrade

Tesla ramped up output at the Shanghai plant in August, defying heatwaves and Covid curbs that hit its suppliers in the southwest region

Tesla has slashed prices of its vehicles in China for the second time in a few months.
Tesla China-made Model 3 vehicles are seen during a delivery event at the carmaker's factory in Shanghai, April 2022. File photo: Reuters.


Tesla’s China sales tripled in August following key upgrades to its Shanghai plant that cut delivery speeds.

The US electric vehicle maker sold 76,965 cars in August, all made in China, up from 28,217 in July. It also exported 42,463 Model 3s and Model Ys from China last month, up from 19,756 in July.


Factory Face-Lift

After a scheduled upgrade disrupted most of July’s production, Tesla ramped up output at the Shanghai plant in August, defying heatwaves and Covid curbs that hit its suppliers in the southwest region.

Battery maker CATL’s Yibin plant, which mainly supplies battery cells to Tesla Shanghai, had to shut part of its operations due to local power restrictions in mid-August.

The output ramp-up enabled Tesla to accelerate deliveries of the Model 3 and Model Y electric cars to customers especially in China, where it faces more competition from local rivals.

It slashed delivery waiting times for its two best-selling models to a maximum of 14 weeks in China, while buyers of the rear-wheel drive Model Y can pick up the SUV in a month after placing the order, according to Tesla‘s Chinese website.


China Car Sales

China’s overall passenger car sales in August jumped 28.4% from a year earlier to 1.9 million, the CPCA said.

After a difficult start to the year that has seen China’s economy slow amid Covid lockdowns, auto sales in China have rebounded thanks to government incentives and tax breaks.

Exports of passenger vehicles jumped 77.5% last month, bucking an overall export growth slowdown, the CPCA added.

Sales of electric cars accounted for 28% of the total in August and rose by 111.2%, it added.

BYD led the electric vehicle producers with 173,977 cars delivered in August, while Nio, Xpeng and Li Auto delivered 10,677, 9,578 and 4,571 vehicles, respectively.


Honda Production Lags

Meanwhile, Tesla competitor Honda Motor Co said on Thursday it would reduce production by up to 40% at two Japanese plants for the rest of the month due to ongoing supply chain and logistical problems.

Its assembly plant in Saitama prefecture, north of Tokyo, will slash output by about 40% this month. Two lines at its Suzuka plant in western Japan will cut back production plans by about 20% in September.


  • Reuters, with additional editing from Alfie Habershon


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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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