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

Tesla has managed to increase its electric vehicle deliveries from its China factory by 17%, even as competitors Li Auto and Nio experience a dip in sales. The US automaker has defied the declining trend in the first half of the year, benefiting from a substantial government subsidy which has helped to propel sales.

The Shanghai Gigafactory 3, owned by American automobile manufacturer, produced and distributed 86,697 Model 3 and Model Y vehicles to local and international customers in August. This is a 17 per cent increase from July's numbers and a 3 per cent rise from August of the previous year, as reported by the China Passenger Car Association (CPCA).

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

"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that Tesla and its domestic competitors have profited from the Chinese government's financial incentives intended to promote the acquisition of electric vehicles as alternatives. As younger drivers show a growing preference for electric cars over gasoline-fueled ones, Tesla's sales in China are expected to stay consistent in the future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move occurred merely three months subsequent to introducing incentives aimed at hastening the shift of the local auto industry.