Tesla’s China Factory Outperforms Rivals with 17% Increase in EV Deliveries Amidst Greater Government Subsidy Support

Tesla increases electric vehicle deliveries by 17% from its Chinese production center as competitors Li Auto and Nio experience a decline in sales. The American automobile manufacturer defies the negative trend in the first half of the year, as increased government subsidies help boost sales.

Gigafactory 3 in Shanghai, owned by US auto manufacturer, shipped 86,697 Model 3 and Model Y vehicles to customers both locally and internationally in August. This represents a 17% increase from July and a 3% increase compared to August of the previous year, as stated by the China Passenger Car Association (CPCA).

Even with the recovery, the production plant's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles they shipped within the same timeframe the previous year.

"Tesla and its domestic competitors have gained from the financial incentives provided by the Chinese government to support the acquisition of electric vehicles as substitutes," expressed Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "As a growing number of younger motorists show a preference for electric vehicles over gas-powered ones, Tesla's market performance in China is expected to maintain its stability in the forthcoming months."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two-fold, merely three months following the introduction of incentives aimed at speeding up the transformation of the national car industry.