Tesla Outperforms Rivals Li Auto and Nio with 17% Surge in EV Deliveries from China Amid Subsidy-Driven Sales Boost

Tesla has increased its electric vehicle deliveries from its Chinese factory by 17% as competitors Li Auto and Nio see a decline in sales. Despite a general negative trend in the first half of the year, the American automaker has managed to thrive, in part due to substantial government subsidies boosting sales.

Shanghai's Gigafactory 3, owned by the American automaker, shipped 86,697 Model 3 and Model Y cars to local and international customers in August. This represents a 17% increase from July and a 3% rise from August the previous year, as per data from the China Passenger Car Association (CPCA).

Even with the recovery, the factory's shipments in the initial eight months of 2024 were 6 percent less than the 624,983 cars it shipped during the equivalent period the previous year.

"The monetary incentives provided by China's government to promote the acquisition of electric vehicles as replacements have been advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales supervisor at Yiyou Auto Service in Shanghai. "Given the increasing preference for electric cars over gasoline-powered ones among young drivers, Tesla's market performance in China is projected to stay steady in the foreseeable future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months after introducing benefits to speed up the shift of the local car industry.