Tesla achieved its best performance of the year in August in China, with a month-on-month growth of 37%
Tesla set a new sales record in August 2023, selling over 63,000 vehicles, a 37% year-on-year increase. However, this is still lower than the 64,694 vehicles sold in the same period last year. Tesla's performance in China lags behind its competitor BYD, which sold 370,854 vehicles. Tesla is boosting sales by offering 5-year interest-free loans and being included in the government procurement list. Tesla has denied the news of planning to start production of a 6-seater Model Y by the end of 2025
According to Zhitong Finance APP, in August this year, benefiting from the booming sales in small cities, Tesla (TSLA.US) achieved its best monthly new car sales in China so far this year. Tesla stated that it sold over 63,000 cars in China, the world's largest car market, last month, a significant increase of 37% from July, but may still be lower than the 64,694 cars sold in August last year. The delivery volume of Model 3 and Model Y cars manufactured in China by the company increased by 17% compared to July.
Despite this encouraging progress, Tesla's performance lags far behind its strong Chinese competitors. BYD, the world's largest electric vehicle manufacturer, reported a 35% surge in domestic passenger car sales in August compared to the same period last year, reaching a record 370,854 units. Other local electric vehicle competitors such as Leapmotor and Li Auto also announced higher sales figures.
Like many other car manufacturers, Tesla has had to endure a prolonged price war in China. In the first half of this year, the company's sales in China dropped by 5%. However, despite cutting local sales staff as part of its global layoff plan, there are still factors driving the recent sales momentum.
It is worth noting that since April this year, Tesla has been offering buyers a five-year interest-free loan, and in recent weeks, Tesla cars have also been included in the procurement list for official vehicles by some local governments.
According to two insiders, Tesla plans to start producing a 6-seater version of the Model Y in China from the end of 2025, but Tesla China responded to this as "false information"