Chinese-made Tesla sales hit record high after Shanghai factory upgrade

Oct 9 (Reuters) – Tesla Inc (TSLA.O) delivered 83,135 electric vehicles (EVs) made in China in September, breaking its monthly record, according to a report on Sunday by the China Passenger Car Association (CPCA).

The number marks an 8% increase from August and sets a record for Tesla’s Shanghai factory since production began in December 2019, surpassing the previous deliveries record of 78,906 in June, as the American automaker continues to invest in production in China.

“Record sales of Tesla cars made in China showed that electric vehicles are leading the mobility trend,” Tesla said in a brief statement.

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Globally, Tesla last week said it delivered 343,830 electric vehicles in the third quarter, a record for the world’s most valuable automaker, but less than the 359,162 average analysts had expected, according to Refinitiv.

Tesla has ramped up deliveries to China after suspending most production at the Shanghai factory in July for an upgrade, which boosted the factory’s weekly production capacity to around 22,000 units against levels of around 17,000 in June, Reuters previously reported.

Since opening the factory in its second-largest market in late 2019, Tesla has sought to operate the Chinese mall facility at full capacity.

However, it plans to keep production at its Shanghai plant at around 93% capacity until the end of the year, in a rare move for the U.S. automaker, Reuters reported last month, citing sources. , who did not specify why he was doing it. .

The factory, which manufactures Model 3s and Model Ys for both sales in China and for export to other markets including Europe and Australia, had reopened on April 19 after a lockdown of the COVID-19, but did not resume full production until mid-June.

Production has ramped up despite heatwaves and COVID restrictions hitting its suppliers in the southwestern region of the country.

Tesla, which has been offering insurance incentives to consumers in China since September, faces growing competition from domestic EV makers in a sharply weakening economy as consumption plummets amid tough COVID restrictions. .

China’s BYD (002594.SZ) continued to lead the domestic EV market with 200,973 wholesale sales in September, a nearly 15% jump from August. CPCA said rising oil prices and government subsidies continue to encourage more consumers to choose electric vehicles.

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Reporting by Krystal Hu in New York, Anirudh Saligrama in Bangalore and Zhang Yan in Shanghai; Editing by Lisa Shumaker, Gary McWilliams and Muralikumar Anantharaman

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