Tesla China’s electric vehicle (EV) sales experienced a significant 15.3% increase in July 2024, reaching 74,117 units compared to the same period last year, according to the China Passenger Car Association (CPCA).
The deliveries of Tesla’s popular Model 3 and Model Y also saw a 4.4% month-over-month increase in July.
Overcoming Q1 Delivery Decline and Concerns
This surge in sales marks a strong rebound for Tesla China after reporting an 8.5% year-over-year decline in vehicle deliveries during the first quarter of 2024.
Elon Musk, Tesla’s CEO, addressed concerns about the decline during the company’s Q1 2024 earnings call, attributing it to global pressures on EV adoption and other manufacturers shifting towards plug-in hybrids.
However, Musk expressed confidence in the long-term dominance of electric vehicles in the market.
Tesla China’s Significant Contribution and Q2 Recovery
Tesla China has consistently played a pivotal role in the company’s overall deliveries.
Despite concerns about demand after the first-quarter results, Tesla China quickly rebounded in the second quarter, achieving a remarkable 75.73% month-over-month increase in EV sales in May.
Increased Demand and Production Capacity
In recent developments, wait times for the Tesla Model 3 in China have been growing, suggesting a rise in demand for the vehicle. The introduction of the new Tesla Model 3 Performance further fueled this momentum. By mid-July, Tesla’s Giga Shanghai factory was operating at full capacity once again.