Tesla’s production in China has seen a remarkable uptick, growing almost 20% in June and helping the company’s record-breaking quarterly sales performance.
According to preliminary data from the China Passenger Car Association (CPCA) on Tuesday, Tesla’s output from Gigafactory Shanghai was a total of 93,680 cars in June 2023. This figure marks a significant increase from the 78,906 units produced in June 2022 and the 77,695 vehicles in May this year.
While the CPCA’s report did not specify the split between local deliveries and exports, Tesla’s strategy usually centers on domestic market sales in the final month of each quarter, reports Bloomberg.
According to CNN’s calculations of CPCA data, Tesla’s Gigafactory Shanghai accounted for 247,212 cars in the second quarter (April to June), which is up 120% compared to the year-ago quarter. This means Giga Shanghai output accounted for more than half of Tesla’s 466,000 deliveries in Q2, a quarterly record for the company.
Tesla started the year on a strong note, slashing prices for its locally manufactured Model 3 sedans and Model Y SUVs. However, this prompted a competitive response from local rivals, sparking a price war that peaked around the Shanghai auto show in April.
The electric vehicle market has since regained momentum, with total sales of new-energy passenger vehicles to dealers in June rising an estimated 30% from a year ago and up 10% from May, totalling 740,000 units. This surge in sales was further encouraged by the Chinese government’s recent extension of tax breaks for consumers purchasing clean cars through 2027, underlining its continued support for the EV market.
