Tesla Outperforms Chinese Rivals with 17% Increase in EV Deliveries Amid Government Subsidy Boost

Tesla has increased its electric vehicle deliveries from its China factory by 17%, even as its competitors, Li Auto and Nio, see a decline in sales. Despite the general downward trend in the first half of the year, the American car manufacturer has managed to do well, largely due to increased government subsidies boosting sales.

Shanghai's Gigafactory 3, owned by the American auto manufacturer, shipped out 86,697 of their Model 3 and Model Y cars to both local and international customers in August. This figure represents a 17 per cent increase from July's numbers and a 3 per cent rise compared to the same month last 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 less than the 624,983 vehicles it dispatched during the equivalent period the previous year.

"Tesla and its domestic competitors have gained from the Chinese government's financial incentive promoting the purchase of electric vehicles (EVs) as replacements," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given the growing preference for electric vehicles over gas-powered ones among younger drivers, Tesla's sales in China are expected to remain steady in the near future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came just three months after the introduction of incentives aimed at speeding up the transformation of the local car industry.