Tesla’s Chinese Gigafactory Outperforms Rivals Li Auto, Nio Amid Increased EV Subsidies: A Closer Look at the US Carmaker’s Rising Sales

Tesla's electric vehicle deliveries from its Chinese factory rise by 17%, even as competitors Li Auto and Nio experience declining sales. The American automobile company defies the market slump in the initial six months, thanks to a substantial government subsidy that spurred sales.

The Shanghai Gigafactory 3, owned by American automotive company, dispatched 86,697 of its Model 3 and Model Y vehicles to both local and international customers in August. This represents a 17% increase from July and a 3% rise from August of the previous 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 lower than the 624,983 vehicles it delivered in the corresponding period the previous year.

"Tesla and its domestic competitors have gained from the Chinese government's monetary incentives to promote the buying of electric vehicles as replacements," stated Tian Maowei, who is a sales executive at Yiyou Auto Service in Shanghai. He added that, "With an increasing number of younger drivers favoring electric cars over those powered by gasoline, Tesla's sales in China are expected to stay consistent in the near future."

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