Tesla Defies Market Trends: Delivers 17% More EVs from China Amid Sales Slump for Li Auto, Nio

Tesla has increased its electric vehicle deliveries from its Chinese factory by 17%, while competitors Li Auto and Nio have seen a drop in sales. Despite a general slump in the market, the American automobile manufacturer has managed to resist the downward trend in the first half of the year, largely thanks to a significant boost in government subsidies.

The Shanghai-based Gigafactory 3, owned by American automaker, delivered a total of 86,697 Model 3 and Model Y cars to customers both domestically and internationally in August. This marks a 17% increase from July and a 3% rise from August of the previous year, as reported by the China Passenger Car Association (CPCA).

Even with the recovery, the plant's shipments in the initial eight months of 2024 were 6 per cent lower than the 624,983 vehicles it shipped during the equivalent period the previous year.

"Tian Maowei, a sales manager at Shanghai's Yiyou Auto Service, stated that Tesla and its domestic competitors have profited from the Chinese government's financial incentive to promote the purchase of electric vehicles as replacements. He added that as a growing number of young motorists show a preference for electric cars over gas-powered ones, Tesla's market performance in China is expected to remain steady in the near future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers twofold, a mere three months after initiating incentives to speed up the transformation of the local car industry.