Tesla’s China Factory Surges Ahead with 17% More EV Deliveries, Outperforming Rivals Li Auto and Nio Amid Government Subsidy Boost

Tesla has increased its electric vehicle deliveries from its Chinese factory by 17%, even as competitors such as Li Auto and Nio see a decline in sales. Despite the overall downward trend in the first half of the year, the American automaker has managed to thrive, largely due to a significant boost in government subsidies.

The American auto manufacturer's Gigafactory 3 in Shanghai distributed 86,697 Model 3 and Model Y vehicles to both local and international customers in August. This is a 17% increase from 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 factory's shipments in the initial eight months of 2024 were 6 per cent less than the 624,983 vehicles it shipped during the equivalent period the previous year.

"Tesla and its domestic competitors have gained from the Chinese government's monetary incentives that promote the acquisition of electric vehicles as replacements," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "With an increasing number of younger drivers favoring electric vehicles over gas-powered ones, Tesla's market performance in China is predicted to stay constant in the near future."

Towards the end of July, Beijing increased the subsidies for electric vehicle purchasers by two times, merely three months following the introduction of rewards aimed at speeding up the shift of the local car industry.