Tesla's China-Made Sales Smash Record After Factory Upgrade

Tesla’s sales of electric vehicles made in China hit a monthly record in September after upgrades to its Shanghai factory, the China Passenger Car Association (CPCA) said on Sunday.

Tesla delivered 83,135 China-made electric vehicles in September, an 8% increase from August, and topping the previous high of 78,906 in June, the CPCA said.

“The record high sales of China-made Tesla cars showed electric vehicles have been leading the mobility trend,” Tesla said in a brief statement.

Tesla quickened its China deliveries after suspending most production at the Shanghai plant in July for an upgrade, which has brought the factory’s weekly output capacity to around 22,000 units compared with levels of around 17,000 in June.

Since the plant opened in its second largest market in late 2019, Tesla has sought to run the facility in China’s commercial hub at full capacity.

It, however, plans to hold production at its Shanghai plant at about 93% of capacity through till the end of the year.

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Covid And Heatwaves

The plant, which manufactures Model 3s and Model Ys to both sell in China and export to other markets including Europe and Australia, reopened on April 19 after a Covid lockdown, but only resumed full production in mid-June.

Production accelerated despite heatwaves and Covid curbs that hit its suppliers in Sichuan in the country’s southwest.

Tesla is now facing growing competition from domestic EV makers in a sharply weakening economy, while consumption falls amid the strict Covid curbs.

China’s BYD continued to lead the domestic EV market with 200,973 wholesale sales in September, a nearly 15% jump from August.

CPCA said higher oil prices and government subsidies continue to encourage more consumers to choose electric vehicles.