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

Tesla's electric vehicle deliveries from its Chinese factory increased by 17%, even as sales declined for competitors Li Auto and Nio. In the first six months, the U.S. auto manufacturer managed to defy the declining trend, helped by a substantial government subsidy that stimulated sales.

The American automobile manufacturer's Gigafactory 3, located in Shanghai, distributed 86,697 Model 3 and Model Y cars to both local and international customers in August. This is a 17% increase compared to July, and a 3% rise compared to the same time 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 in the equivalent period the previous year.

"Tesla and its domestic competitors have profited from the financial incentives provided by the Chinese government to promote the purchase of electric vehicles (EVs) for replacement, " stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. He added, "With a growing number of young drivers favoring electric cars over those powered by gasoline, Tesla's market performance in China is expected to remain consistent in the foreseeable future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold. This move came only three months following the introduction of incentives aimed at fast-tracking the transformation of the local car industry.