Tesla demonstrated solid growth in its China operations, with a 142% year-on-year surge in sales, as reported by the China Passenger Car Association (CPCA) on Monday.
In May, Tesla delivered 77,695 EVs made in its Shanghai factory, reflecting a modest 2.4% monthly increase from April’s figures. The remarkable annual growth comes in contrast to the sales recorded in May 2022, when the automaker managed to sell only 32,165 vehicles due to the COVID-19 restrictions in Shanghai that affected production, reports Reuters.
This critical sales data surfaces during intense scrutiny for Tesla in China, particularly with CEO Elon Musk’s recent visit to the country. Musk concluded a two-day trip that involved discussions with Chinese Vice Premier Ding Xuexiang and several industry and commerce ministers. He also met with Zeng Yuqun, chairman of battery supplier CATL.
Check out Musk speaking to Giga Shanghai employees during his visit below:
In light of Tesla’s intensifying competition from local EV manufacturers and the uncertainty regarding the expansion of the Shanghai plant, Musk’s visit is his first in three years since Beijing reopened its borders. Notably, Musk’s schedule included a visit to the Shanghai factory and a meeting with Chen Jining, the ruling party’s Shanghai secretary. Chen encouraged Tesla to expand its investments and business footprint in the city, according to a municipal government statement.
In other news, Tesla is reportedly executing an over-the-air software update described as a product recall. This update aims to address a braking issue and will impact more than 1.1 million vehicles, as China’s market regulator stated in mid-May.
Recently, Tesla has raised its prices in several countries, including China. This move follows earlier price cuts that spurred a price war, prompting many international and local brands to adjust their pricing strategies.
Further detailed car sales figures for May are expected from the CPCA later this month.
