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

Tesla increases its electric vehicle deliveries by 17% from its Chinese plant, even as competitors Li Auto and Nio see a decline in sales. The US auto manufacturer manages to resist the overall market downturn in the first half of the year, thanks to an increase in government subsidies boosting sales.

In August, 86,697 Model 3 and Model Y vehicles manufactured at Gigafactory 3 in Shanghai were shipped to customers both domestically and internationally, an increase of 17% from the previous month and a 3% rise compared to the same period last year, as reported by the China Passenger Car Association. This factory is owned by the American auto manufacturer.

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

"Tesla and its domestic competitors have gained from the Chinese government's financial incentives aimed at promoting the purchase of electric vehicles for replacement purposes," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "Considering the growing preference for electric cars over traditional gasoline-fueled vehicles among younger drivers, Tesla's market performance in China is expected to stay steady in the foreseeable future."

Towards the end of July, Beijing significantly increased the financial aid given to electric vehicle purchasers, a mere three months following the introduction of incentives aimed at speeding up the shift of the local car industry.