Tesla’s China Factory Outperforms Rivals with 17% Rise in EV Deliveries, Boosted by Government Subsidies

Tesla's Chinese factory sees a 17% increase in EV distribution as competitors Li Auto and Nio experience a decline in sales. The US automaker defies the overall downward trend in the first half of the year, with a significant government subsidy driving sales growth.

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

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

"The financial incentives offered by China's government to promote the buying of electric vehicles (EVs) as replacements have proven advantageous for Tesla and its domestic competitors," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Given that a growing number of younger motorists are choosing electric vehicles over those that run 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 given to electric vehicle purchasers by two times. This decision came only three months following their introduction of incentives aimed at hastening the transformation of the national car industry.