Tesla sales made in China hit record after Shanghai factory upgrade

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

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

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

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

Tesla accelerated its deliveries in China after suspending most production at the Shanghai plant in July for an upgrade, bringing the factory’s weekly production capacity to around 22,000 units from levels of around 17,000 in June, Reuters previously reported.

Since the plant opened in its second-largest market in late 2019, Tesla has sought to operate the facility in China’s commercial hub at full capacity.

However, it plans to maintain production at its Shanghai plant in about 93% capacity until the end of the year, in an unusual move for the US automaker, Reuters reported last month, citing sources, who did not say why it was doing so.

The plant, which makes Model 3 and Model Y for sale in China and export to other markets including Europe and Australia, reopened on April 19 after a COVID-19 lockdown but only resumed full production in mid-June.

Production accelerated despite heat waves and COVID restrictions affecting 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 electric vehicle makers in a sharply weakening economy while consumption falls amid tight COVID restrictions.

Chinese BYD (002594.SZ) continued to lead the domestic electric vehicle market with 200,973 wholesale sales in September, an increase of nearly 15% from August. CPCA said higher oil prices and government subsidies continue to encourage more consumers to choose electric vehicles.

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

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