Tesla has seen a remarkable 51.33% revenue growth in the Chinese market for the second quarter.
On July 24, documents disclosed by Tesla indicated that for the second quarter of 2023, the company achieved revenues of $5.73 billion in the Chinese market. This was a $1.944 billion increase from the $3.787 billion reported during the same period last year, representing a growth rate of 51.33%.
Looking globally, Tesla's second-quarter revenue for this year was $24.927 billion, up 47% year-on-year. The Chinese market's revenue accounted for 22.99% of this total.
The U.S. remains Tesla's largest market, where it posted second-quarter revenues of $11.332 billion, up 17.87% from last year's $9.614 billion. Revenues from other international markets stood at $7.864 billion, up 122.59% year-on-year.
In terms of revenue growth, the Chinese market outpaced the global average.
On the one hand, the Chinese automotive market experienced a slump in sales in the second quarter of 2022 due to the pandemic, resulting in a strong base effect. On the other hand, after Tesla made significant price cuts in the Chinese market, its sales have been steadily growing. Tesla has not disclosed its performance in segmented markets. According to data from the China Passenger Car Association (CPCA), Tesla's retail sales in China from January to June this year totaled 294,100 vehicles, up 48.9% year-on-year, and its market share in the new energy vehicle market reached 9.5%.
Tesla's financial report showed that in the second quarter of this year, Tesla's share of the entire Chinese automotive market continued to rise, reaching about 2%.
This year, Tesla has adjusted its prices in the Chinese market multiple times. As we entered the second half of the year, the pace of these price adjustments has not stopped. On July 1, Tesla China announced that customers purchasing the Model S/X in stock could enjoy discounts ranging from ¥35,000 to ¥45,000 ($5,400 to $6,900). On July 9, Tesla's official Weibo account announced a new car referral reward policy, offering rewards ranging from ¥3,500 to ¥7,000 ($540 to $1,080) for its four models on sale: Model 3, Model Y, Model S, and Model X.
It's worth noting that Tesla CEO Elon Musk mentioned during the recent second-quarter earnings call that Tesla is likely to continue reducing prices in order to gain a higher market share.
As for Tesla's production in China, the capacity of the Shanghai Gigafactory is over 750,000 vehicles per year. Currently, the Shanghai Gigafactory has been operating at full capacity for several months. CPCA data shows that Tesla China's wholesale sales (roughly equivalent to Shanghai factory output) from January to June were 476,500 vehicles, up 61.7% year-on-year.
