Tesla (TSLA, Financial) has reported a significant boost in its China-made electric vehicle sales, reaching 88,321 units in September, marking a 19.2% increase year-over-year. The company's popular models, Model 3 and Model Y, saw a 1.9% increase in deliveries from the previous month. This surge in deliveries contributed to Tesla's best quarterly performance ever in China, with its Shanghai Gigafactory posting a third consecutive month of growth.
Although Tesla has announced its global quarterly delivery numbers, specific figures for China are not fully disclosed. Estimates suggest that third-quarter figures for China might reach 249,135 units, surpassing the prior peak of 248,686 units in the fourth quarter of 2023. Despite this increase in Chinese sales, Tesla's global third-quarter deliveries were approximately 463,000 units, slightly below some analysts' expectations of 464,000 units.
Meanwhile, Tesla's local competitor, BYD, achieved its best monthly performance ever, with sales of its Dynasty and Ocean series electric and plug-in hybrid vehicles climbing 45.56% year-over-year to 417,603 units in September. BYD's records indicate that 33,012 vehicles were exported, representing 7.9% of total sales.
Tesla's China sales grew by 12% in the third quarter, marking the first quarterly growth this year. In response to increasing competition from local automakers like Nio and XPeng, Tesla has been expanding its promotional offers in China. The company extended zero-interest financing for select Model 3 and Model Y vehicles through the end of October. Additionally, Tesla plans to begin production of its six-seat version of Model Y in China by late 2025.
The company is also gearing up to launch its autonomous taxi service on October 10 and aims to release its Full Self-Driving (FSD) advanced driver-assist software in China and Europe next year, pending regulatory approval. These new initiatives are intended to foster new growth opportunities for Tesla.
Government incentives have played a role in boosting Tesla's sales, with a subsidy of 20,000 yuan ($2,830) encouraging vehicle trade-ins. China's recent economic stimulus efforts have kept dealerships busy during the national holiday period, with expectations for continued momentum into October.
Recently, Tesla celebrated a milestone of exporting its 1 millionth vehicle from the Shanghai Gigafactory, highlighting its role as Tesla's primary export hub. Since beginning to deliver Model 3 vehicles from Shanghai in January 2020 and Model Y a year later, the factory started exporting cars globally in April 2021.
