Tesla (TSLA.US) reported a 15.3% YoY increase in China sales in July, reversing the trend of decline.
Tesla Inc. (TSLA.US) delivered a significant increase in its vehicle deliveries in the Chinese market in July, up 15.3% YoY, successfully reversing the previous trend of decline in the largest Asian economy. According to the initial data released by the China Association of Automobile Manufacturers (CAAM) on Friday, Tesla’s Shanghai factory delivered 74117 Model 3 and Model Y vehicles in July, down 24.2% from June. On a monthly basis, deliveries increased 4.4% from June.
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These figures are a positive sign for Tesla under the leadership of Elon Musk, especially as the company’s second-quarter earnings missed analyst expectations for the fourth consecutive quarter, and the launch event for its self-driving taxi model was postponed until October. Despite the challenges, Tesla’s performance in China stands in sharp contrast to some other Chinese carmakers, which saw their sales decline sharply month-on-month due to weak consumer spending.
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To boost electric vehicle sales, the Chinese government last month announced that it would double the subsidy for exchanging old cars for new ones, as part of its Rmb300bn ($41.4bn) stimulus package. BYD Co. retained its position as China’s most popular car brand, with a slight increase of 0.2% in July to 340,799 vehicles sold. Thanks to discounts, plug-in hybrid vehicle sales surged to 210,799 units, while pure electric vehicle sales fell to their lowest level in five months.
Among Chinese electric vehicle manufacturers listed in the US, Li Auto Inc. (LI.US) stood out with a 6.8% YoY increase in sales in July, delivering 51,000 vehicles, mainly due to the high popularity of its upgraded electric vehicle.