Shanghai factory renovations cut into Tesla’s China sales last month

The sharp drop for Tesla comes as sales of new energy vehicles in China more than doubled as the world’s largest car market aggressively promotes the switch to electric.

Tesla (TSLA) It delivered 28,217 electric vehicles from its Shanghai factory last month, down from 77,938 units in June, according to data released by the China Passenger Car Association on Tuesday. The sales figure is down 54% compared to the same period last year.
The CPCA did not elaborate on the reasons behind Tesla’s July sales decline, but the US carmaker said in its quarterly earnings call last month that its Shanghai factory had recently undergone some “equipment upgrades” aimed at boosting production rates.
Multiple media outlets have reported that Tesla has halted most production at its Shanghai plant To begin work on the upgrade in July, it could increase the plant’s output by 22,000 cars a week – a 30% increase over its current capacity.
The upgrade is scheduled to be completed by August 7, according to Bloomberg and Chinese media site 36kr. Tesla did not respond to a request for comment.
According to Tesla’s quarterly update last month, the Shanghai plant is already Tesla’s largest factory in the world by installed capacity, capable of producing more than 750,000 vehicles a year. Once the upgrade is complete, the plant will be able to churn out more than one million EVs per year, according to media reports.

“With the Fremont and Shanghai factories each achieving their peak production months and new factory growth, we are focused on a record-breaking second half of 2022,” Tesla said.

EV sales surge in China

Although Tesla’s sales fell in July, Chinese EV and battery maker BYD reclaimed the top spot, selling 80,991 pure electric vehicles, up 16% from June.

of the country Overall retail sales of new energy vehicles, including electric vehicles and plug-in hybrids, rose 117% in July compared to a year ago, thanks to the government Increasing EV demand is due to incentives, recovery in the supply chain, and rising oil prices, CPCA said on Tuesday.

China has aggressively pushed the development of EVs in recent years, offering cash subsidies to automakers to encourage production.

China’s new energy car sales could reach 6 million units by 2022, the CPCA said on Tuesday, up from its previous estimate of 5.5 million vehicles. The new number represents a 70% increase over last year.

Source link

Leave a Comment