Due to a planned update to its manufacturing lines in Shanghai, Tesla sold 28,217 Chinese-made vehicles in July, compared to more than a month earlier. According to the China Passenger Car Association (CPCA), the American automaker exported 19,756 Model 3 and Model Y vehicles from China last month. It sold 78,906 cars in June and exported 968.
Typically, Tesla China concentrates more on local sales toward the end of a quarter while exporting more vehicles in the beginning. According to internal memos reviewed by Reuters, Tesla paused the majority of production at the Shanghai facility in July as a result of an upgrade that intends to increase the factory's weekly output to about 22,000 units from levels of about 17,000 in June.
The output ramp-up at Tesla's most prolific manufacturing facility comes after production losses caused by a two-month COVID lockout in Shanghai reduced the company's second-quarter profit margin.
According to the CPCA, China sold 1.84 million passenger cars overall in July, an increase of 20.1% from the same month last year. The report also noted that sales of plug-in hybrids outpaced those of pure electric vehicles, accounting for 26.4% of all vehicle sales in July and growing 117.3%.
In contrast to an earlier prediction of 5.5 million, the group now anticipates that sales of electric vehicles would total 6 million units for the entire year. With 163,042 vehicles shipped in July, BYD led the EV market, with more than half of its sales coming from plug-in hybrids.
Data shows 10,052, 11,524, and 10,422 vehicles were delivered by Nio, Xpeng, and Li Auto, respectively. Sales of conventional hybrid vehicles surged 81% in July compared to the same month last year, with Japan's Toyota Motor Corp. and Honda Motor Co. Ltd. dominating the market.
The production figures at Tesla Giga Shanghai from April to June show that the facility can ramp up production swiftly even after pausing operations for a while. It will be fascinating to see Giga Shanghai's August figures after the renovations are likely finished.
In Q2 2022, Tesla announced 254,695 deliveries. In the first half of 2022, Tesla delivered 564,743 automobiles in total.
Tesla reaffirmed during the most recent earnings call that it wanted to increase by more than 50% by the year's end. Tesla's goal, according to Elon Musk, is to produce 2 million vehicles by the end of the year. Tesla has a decent chance of achieving its objective with the Fremont Factory, Giga Shanghai, Giga Berlin, and its new headquarters in Austin.