Electric vehicle giant Tesla witnessed a remarkable increase in revenue from its China operations during the second quarter of the year, according to the 10-Q filing submitted to the SEC. The revenue from China amounted to $5.731 billion, marking an impressive growth of 51.33 percent compared to the same period last year. Additionally, this figure represented a 17.17 percent increase from the previous quarter.
However, it is crucial to note that the exceptional year-on-year surge in revenue can be attributed primarily to a favorable base effect. In the second quarter of the previous year, Tesla faced significant disruptions due to COVID-related lockdown measures in Shanghai. The automaker’s Shanghai factory remained closed for approximately a month at the end of March 2022, resulting in a temporary halt in production until April 19, 2022. As a consequence, Tesla could only deliver 89,275 vehicles in China during that period, with a meager 1,152 deliveries in April 2022.
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Comparing the global revenue figures, Tesla’s total revenue in the second quarter reached $24.927 billion, demonstrating a substantial year-on-year growth of 47.2 percent and a 6.85 percent increase from the first quarter.
Breaking down the revenue contributions by market, the Chinese market accounted for 22.99 percent of Tesla’s total revenue in the second quarter, showing a rise from 20.97 percent in the previous quarter and 22.36 percent during the same period last year. The US market remained a significant revenue driver, contributing $11.332 billion, or 45.46 percent, to Tesla’s total revenue in Q2. In comparison, the markets outside China and the US contributed $7.864 billion, making up 31.54 percent of Tesla’s total revenue.
Tesla’s overall vehicle deliveries surged impressively in the second quarter, reaching 466,140 units worldwide, an 83.02 percent increase compared to the same period last year and a 10.23 percent increase from the previous quarter.
During the second quarter, Tesla sold 247,217 China-made vehicles, which exhibited a remarkable 21.76 percent growth from the same period last year, according to data released by the China Passenger Car Association (CPCA). This indicates that approximately 53 percent of Tesla’s global deliveries during the first quarter originated from its Shanghai plant.
Furthermore, the automaker’s Shanghai factory made significant strides in exports during the second quarter, with 90,541 vehicles shipped overseas, reflecting an astounding 288.45 percent year-on-year growth.
In conclusion, Tesla’s impressive revenue growth in China during the second quarter can be largely attributed to the bounce-back effect from last year’s COVID-induced disruptions. With the production facility in Shanghai ramping up its output and export volumes witnessing substantial growth, Tesla continues to solidify its position in the highly competitive global electric vehicle market.
