Tesla Outperforms Rivals Li Auto and Nio: Delivers 17% More EVs from Chinese Factory Amidst Larger Government Subsidy

Tesla has increased its electric vehicle deliveries by 17% from its Chinese plant, while competitors Li Auto and Nio have seen a decrease in sales. In the first half of the year, the American automaker has managed to defy the general industry downturn, largely due to significant government subsidies boosting their sales.

The American automotive manufacturer's Gigafactory 3, located in Shanghai, distributed 86,697 units of Model 3 and Model Y cars to both local and international customers in August. This represents a 17% increase from July and a 3% rise compared to the same timeframe the previous year, as reported by the China Passenger Car Association (CPCA).

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

"Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, stated that the financial incentives offered by the Chinese government to promote the acquisition of electric vehicles as replacements have been advantageous for Tesla and its domestic competitors. He further suggested that with the increasing preference of younger drivers for electric cars over those running on gasoline, Tesla's sales in China are expected to stay consistent in the upcoming months."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months after they introduced incentives to speed up the shift of their national car industry.