Tesla triples deliveries of China-made cars after upgrade in Shanghai plant

Tesla (TSLA.O) sold 76,965 Chinese-made vehicles in August, nearly triple its sales from a month ago, as it quickened deliveries after ramping up output at its Shanghai plant.

The US carmaker exported 42,463 Model 3s and Model Ys from China last month, the China Passenger Car Association (CPCA) said. In July, it sold 28,217 vehicles and exported 19,756.

After a scheduled upgrade disrupted most production in July, Tesla ramped up output at the Shanghai plant in August, defying heatwaves and COVID curbs that hit its suppliers in the southwest region.

Battery maker CATL’s (300750.SZ) Yibin plant, which mainly supplies battery cells to Tesla Shanghai, had to shut part of its operations due to local power restriction policies in mid-August.

The output ramp-up enabled Tesla to accelerate deliveries of the Model 3 and Model Y electric cars to customers especially in China, where it faces more competition from local rivals.

It slashed delivery waiting time for its two best-selling models to a maximum of 14 weeks in China, while buyers of the rear-wheel drive Model Y can pick up the SUV in a month after placing the order, according to Tesla’s Chinese website.

China’s overall passenger car sales in August jumped 28.4 per cent from a year earlier to 1.9 million, the CPCA said.

After a difficult start to the year that has seen China’s economy slow amid COVID lockdowns, auto sales in China have rebounded thanks to government incentives and tax breaks.

Exports of passenger vehicles jumped 77.5 per cent last month, bucking an overall export growth slowdown, CPCA said.

Sales of electric cars accounted for 28 per cent of the total in August and rose by 111.2 per cent, it added.

BYD (002594.SZ) led the electric vehicle producers with 173,977 cars delivered in August, while Nio , Xpeng (9868.HK) and Li Auto (2015.HK) delivered 10,677, 9,578 and 4,571 vehicles, respectively.