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

Tesla's China-based plant has increased its Electric Vehicle deliveries by 17%, even as competitors Li Auto and Nio see a decrease in sales. The American automobile manufacturer has managed to defy the decreasing trend in the first half of the year, largely aided by a significant increase in government subsidies.

In August, the Shanghai-based Gigafactory 3 of American automobile manufacturer delivered 86,697 units of Model 3 and Model Y vehicles to both local and international customers. This represents 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 bounce back, the factory's shipments in the initial eight months of 2024 were down by 6% compared to the 624,983 vehicles it shipped during the equivalent period the previous year.

"Tesla and its domestic competitors have been positively impacted by the Chinese government's monetary incentives promoting the purchase of electric vehicles as replacements," stated Tian Maowei, who manages sales at Shanghai's Yiyou Auto Service. "With an increasing number of young drivers leaning towards electric over gas-powered cars, Tesla is expected to maintain steady sales in China for the foreseeable future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by twofold. This move came only a quarter of a year following the introduction of incentives aimed at speeding up the transformation of the local car industry.