Tesla's car sales in China for its Shanghai-made Model 3 hit a new record high in May. According to government registration data, the company managed to deliver an impressive 11,095 units last month, a huge jump from the 3,635 units it delivered in April.
The US electric car maker initially began production at its Shanghai Gigafactory during the first quarter of the year. Unfortunately, the deliveries of its made-in-China Model 3 electric vehicles were delayed due to the spread of the coronavirus in the country earlier in the year. Just like other factories, Tesla's Shanghai Gigafactory was forced to close and reduce production for a number of months to mitigate the spread of the disease.
Despite the disruptions in its production and its overall supply chain, Tesla was still able to deliver a respectable 10,000 Model 3 units for the first-quarter ending in March. According to registration data released by the China Passenger Car Association (CPCA), Tesla still continued to struggle in selling its cars in April.
As China slowly reopened its economy, pent-up demand for the company's product surged last month with orders pouring in. Unlike the rest of the world, which is still struggling to bounce back, China's auto market was quick to rebound after the government reopened the economy once the number of new cases had declined.
In May, China's overall car sales rebounded by about 12 percent, with around 2.14 million units sold and registered. Last month recorded the second consecutive monthly rise in vehicle sales following the sharp declines during the first quarter. China was of course the first country hit by the pandemic, which meant that it was the first one to come out of it.
In the US, Tesla's factories had remained close for the better part of the second quarter, heavily affecting its North American sales. Analysts point out that Tesla will likely need to rely mostly on its Chinese sales to offset the pandemic impact on its second-quarter performance.
Emboldened by its performance in China, Tesla is planning to double down on its investments in the world's second-largest car market. The company previously announced that it would be expanding its Supercharger network in China, a plan that will cut its profits for the coming quarters. However, the move is necessary for the company to support its growing number of vehicles in the country.
Industry experts predict that Tesla's deliveries for this month could be even greater. The company is currently rolling out new variants of its China-made Model 3s, including a new Long Range RWD model. The company is expected to begin delivering the new variant sometime towards the end of the month.
